New Delhi: In a major boost to India’s energy and chemical sector, a landmark land leasing agreement was signed between Mahanadi Coalfields Limited (MCL) and Bharat Coal Gasification and Chemicals Limited (BCGCL) for setting up a Coal to Ammonium Nitrate Project at Lakhanpur in Odisha.
The agreement was signed in the presence of Union Minister of Coal and Mines G. Kishan Reddy, marking a significant milestone in India’s coal gasification roadmap.
India’s First Indigenous Coal Gasification Project
The project is envisioned as a Coal to 2000 TPD (tonnes per day) Ammonium Nitrate facility, making it a first-of-its-kind initiative in India to deploy indigenously developed coal gasification technology by Bharat Heavy Electricals Limited (BHEL).
This development represents:
- A major push toward self-reliance (Atmanirbhar Bharat)
- Reduced dependence on imported technologies
- Advancement in energy and chemical manufacturing capabilities
Read also: MCL Signs MoU with Bhadrak District to Transform 50 Primary Schools in Dhamnagar, Odisha
Strategic Use of Coal Resources
The project will be developed over approximately 350 acres of land currently under the possession of MCL. It has been made possible due to progressive policy reforms introduced by the Ministry of Coal.
These reforms allow the utilization of Coal Bearing Area (CBA) land for coal gasification projects, enabling:
- Value-added use of India’s abundant coal reserves
- Diversification of the coal sector
- Development of downstream industries like fertilizers and chemicals
Boost to Energy Security and Industrial Growth
The Coal to Ammonium Nitrate project is expected to play a crucial role in:
- Enhancing domestic production of ammonium nitrate, widely used in fertilizers and industrial applications
- Strengthening energy security
- Promoting technological innovation in coal utilization
Officials stated that the project aligns with India’s broader vision of cleaner and more efficient coal usage, while also supporting industrial growth.
About Mahanadi Coalfields Limited (MCL)
Mahanadi Coalfields Limited is one of the major subsidiaries of Coal India Limited and plays a key role in coal production in Odisha. The company is instrumental in ensuring steady coal supply to power plants and industries, contributing significantly to India’s energy sector.
About Bharat Coal Gasification and Chemicals Limited (BCGCL)
Bharat Coal Gasification and Chemicals Limited is a joint venture focused on promoting coal gasification and chemical production in India. The company aims to leverage advanced technologies to convert coal into value-added products, supporting the country’s push for energy diversification and sustainability.
