India’s First Commercial Coal-To-Ammonium Nitrate Plant To Come Up In Jharsuguda
Prime Minister Narendra Modi will lay the foundation stone for a ₹25,016 crore coal gasification project in Odisha’s Jharsuguda district on Saturday, marking a major milestone in India’s push towards energy security, import substitution, and industrial self-reliance.
The project, being developed at Lakhanpur by Bharat Coal Gasification and Chemicals Limited (BCGCL), will house India’s first commercial-scale coal-to-ammonium nitrate manufacturing facility. BCGCL is a joint venture between Bharat Heavy Electricals Limited and Coal India Limited.
The facility will produce 2,000 tonnes of ammonium nitrate per day using indigenous coal gasification technology developed by BHEL, highlighting India’s growing capabilities in advanced energy and chemical manufacturing.
What Is Coal Gasification?
Coal gasification is a process that converts coal into synthesis gas, commonly known as syngas, which can be used to manufacture chemicals, fertilizers, fuels, and industrial feedstocks.
The technology enables the production of products such as methanol, urea, ammonium nitrate, and other high-value chemicals from domestic coal resources, reducing dependence on imports.
With India holding more than 400 billion tonnes of coal reserves the world’s fifth-largest the government sees coal gasification as a strategic tool for extracting greater value from the country’s abundant natural resources.
₹25,016 Crore Investment To Boost Industrial Growth
The project will be built on 350 acres of land owned by Mahanadi Coalfields Limited. A land-leasing agreement between BCGCL and MCL was signed earlier this year, and all major regulatory approvals have already been secured.
Construction activities are expected to commence immediately after the foundation stone ceremony.
The Coal Ministry has extended support through its coal gasification incentive scheme, contributing ₹1,350 crore towards the project.
Officials believe the facility will serve as a blueprint for future coal gasification ventures across the country.
Reducing Import Dependence
India currently imports chemical intermediates and end-use chemical products worth nearly ₹2.7 trillion annually.
By converting domestic coal into valuable industrial products, projects such as the Lakhanpur facility are expected to reduce import dependence while strengthening India’s manufacturing ecosystem.
The government has approved multiple incentive programs with a cumulative outlay of ₹46,000 crore to accelerate coal and lignite gasification projects nationwide.
Massive Employment And Investment Potential
According to the Coal Ministry, India’s coal gasification mission could attract investments worth ₹2.5 trillion to ₹3 trillion over the coming years.
The initiative is expected to support nearly 25 large-scale projects across coal-bearing regions and generate approximately 50,000 direct and indirect employment opportunities.
The Lakhanpur project is expected to play a key role in this broader industrial transformation while supporting regional economic development in Odisha.
A Key Step Towards Atmanirbhar Bharat
The upcoming facility aligns with the government’s Atmanirbhar Bharat vision by leveraging indigenous technology, domestic resources, and local manufacturing capabilities.
With BHEL’s homegrown coal gasification technology at its core, the project showcases India’s ambition to become a global manufacturing and industrial powerhouse while strengthening long-term energy and chemical security.
As India seeks to reduce reliance on imported raw materials and build resilient supply chains, the ₹25,016 crore coal gasification project is expected to become one of the country’s most significant energy-transition and industrial infrastructure investments.
