PM Modi Lays Foundation for ₹25,016 Crore BCGCL Coal-to-Ammonium Nitrate Plant at Lakhanpur, Odisha
Prime Minister Narendra Modi laid the foundation stone of India's first commercial-scale coal-to-ammonium nitrate project at Lakhanpur in Odisha's Jharsuguda district. The ₹25,016 crore project is being developed by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between BHEL and Coal India Limited.
The plant 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 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 Mahanadi Coalfields was signed in April, and the project has secured the required approvals.
The Ministry of Coal is providing ₹1,350 crore in financial support under its coal gasification incentive scheme. The Centre has approved coal and lignite gasification promotion schemes with a cumulative outlay of ₹46,000 crore, aimed at encouraging investment in the sector and reducing dependence on imported feedstocks.
The initiative is expected to attract investments worth ₹2.5–3 lakh crore and generate around 50,000 direct and indirect jobs through nearly 25 projects in coal-bearing regions, positioning the Lakhanpur plant as a model for future coal gasification ventures in India.