Bhubaneswar: India’s first coal gasification-based ammonium nitrate plant will be established in Odisha’s Jharsuguda district.

The Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), will set up the plant at Lakhanpur in Jharsuguda with around Rs 25,000 crore investment.

An agreement was signed between the BCGCL and Mahanadi Coalfields Limited (MCL) in New Delhi recently for leasing land for the mega project.

Union Coal and Mines Minister G. Kishan Reddy and senior officials of the BCGCL and MCL were present on the occasion.

The plant will use indigenous technology

The plant will come up on around 350 acres of land and it is expected to produce 2,000 tonnes of ammonium nitrate per day.

It will use indigenous technology developed by the BHEL for producing ammonium nitrate.

The initiative is expected to significantly reduce India’s dependence on imported ammonium nitrate. Besides, it is likely to position Odisha as a key hub for advanced industrial projects.

“The landmark land leasing agreement between BCGCL and MCL marks a major boost to the coal gasification initiative in the country. With Rs 25,000 crore investment and strong policy support, this initiative will reduce import dependence and enhance value addition to our coal resources, helping us in building a resilient, future-ready energy ecosystem,” said the Union Minister.