Union Coal and Mines Minister G. Kishan Reddy said that the launch of the Coal Gasification Project is a historic step towards converting India’s abundant coal resources into value-added products. This will strengthen the energy security of the country and promote import substitution. Reddy said this when Prime Minister Narendra Modi virtually laid the foundation stone of Bharat Coal Gasification and Chemicals Limited (BCGCL)’s Rs 25,000 crore ‘Coal-to-Ammonium Nitrate’ project during a meeting in Rairangpur in the presence of President Draupadi Murmu. The Union Minister participated in the meeting by being personally present at the project site in Lakhanpur in Jharsuguda district. An official said that the project is targeted to start by September 2029.
Employment opportunities will be created
Reddy said in a post on The ammonia produced from this project will help in making fertilizers, which will benefit the farmers and better utilization of domestic coal resources will strengthen India’s agricultural self-reliance.
The project will strengthen India’s energy security, promote import substitution, reduce dependence on critical imported chemicals and feedstocks, generate employment opportunities, and support the vision of Aatmanirbhar Bharat through the cleaner and more efficient utilization. pic.twitter.com/5lB0Y7M6yx
— G Kishan Reddy (@kishanreddybjp) June 20, 2026
The Union Coal and Mines Minister told reporters at the project site that this joint venture between Coal India Limited and BHEL is the beginning of a new era of coal processing in the country, which will promote indigenous coal gasification technology and help in converting India’s abundant coal resources into value-added chemicals. He said that this project is expected to generate large-scale employment for the youth of the area, promote skill development and accelerate the economic growth of the area through the development of supporting industries and services.
Coal gasification project is something like this
BCGCL is a joint venture company formed between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), in which CIL holds 51 percent stake and BHEL holds 49 percent stake. Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited, is offering about 350 acres of its coal-bearing land at Lakhanpur in Jharsuguda district of Odisha, where the BCGCL project will be built. Apart from this, officials said that MCL will meet the requirement of coal for this project. It will supply 0.79 Mty (million tonnes per annum) of washed coal and 1.19 Mty of reject coal from its Ib Valley Washery.
What is the production target?
He said that this project is in line with the ‘National Coal Gasification Mission’ of the Central Government and is expected to become a model for future ‘Coal-to-Chemical’ projects across the country. An official statement said that the objective of this project is to produce about 0.66 million tonnes (MTPA) of technical grade ammonium nitrate every year through coal gasification. It is one of the first commercial-scale initiatives in India to use indigenously developed ‘Pressurized Fluidized Bed Gasification’ (PFBG) technology for chemical production.
25 thousand crore project approved
Meanwhile, the Rs 25,000 crore project has received ‘single window clearance’ from the ‘High-Level Clearance Authority’ (HLCA) of the Odisha government and the Coal Ministry has also given it a financial incentive of Rs 1,350 crore. Officials said that these approvals will give a big boost to the commercialization of domestic coal gasification technology. He said that after receiving all the necessary legal and environmental clearances, key clearances, financial assistance and a ‘lump sum turnkey execution package’, the project is targeted to be launched by September 2029. It is expected to emerge as a major project that will showcase India’s ability to convert coal into high-value chemical products through indigenous technology.
Leave a Reply