PM Modi to Launch Rs 25,016 Crore Commercial Coal-to-Ammonium Nitrate Project in Odisha

New Delhi, Jun 19 (KNN) Prime Minister Narendra Modi will lay the foundation stone of India’s first commercial-scale coal-to-ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district on June 20, marking a major step towards energy security, import substitution and industrial self-reliance.

The Rs 25,016 crore project is being developed by Bharat Coal Gasification and Chemicals Limited, a joint venture between BHEL and Coal India Limited. It will produce 2,000 tonnes of ammonium nitrate per day using indigenous coal gasification technology developed by BHEL.

Coal gasification converts coal into synthesis gas (syngas), which can be used to manufacture products such as methanol, urea, ammonium nitrate, synthetic natural gas and other industrial chemicals. 

The technology is being promoted as a key strategy to reduce dependence on imported feedstocks and strengthen domestic manufacturing.

India, which possesses over 400 billion tonnes of coal reserves and is the world’s second-largest producer and consumer of coal, is seeking to leverage its domestic resources to reduce imports of critical chemicals and industrial inputs.

The Centre has approved coal and lignite gasification promotion schemes with a cumulative outlay of Rs 46,000 crore to encourage investment in the sector. 

The initiative is expected to attract investments worth Rs 2.5–3 lakh crore and generate around 50,000 direct and indirect jobs through nearly 25 projects in coal-bearing regions.

The Lakhanpur facility will be built on approximately 350 acres of land under the possession of Mahanadi Coalfields Limited, a subsidiary of Coal India. 

A land leasing agreement between BCGCL and MCL was signed in April, and the project has already secured the required approvals.

The Ministry of Coal is providing Rs 1,350 crore in financial support under its coal gasification incentive scheme and has enabled the use of coal-bearing area land for such projects.

The project is expected to serve as a model for future coal gasification ventures and support the government's broader goal of building a self-reliant industrial ecosystem under the vision of Aatmanirbhar Bharat.

(KNN Bureau)