Date: 2026-06-20Category: Press ReleaseState: Union GovernmentCountry: India
President of India Smt. Droupadi Murmu and Prime Minister Shri Narendra Modi lays Foundation Stone of Bharat Coal Gasification & Chemicals Limited (BCGCL) Coal-to-Ammonium Nitrate Project at Lakhanpur, Odisha
**Executive Summary**
On June 20, 2026, the President and Prime Minister of India laid the foundation stone for the Bharat Coal Gasification & Chemicals Limited (BCGCL) Coal-to-Ammonium Nitrate Project in Lakhanpur, Odisha. This ₹25,000 crore joint venture aims to enhance energy security and technological self-reliance by converting domestic coal into value-added chemicals. The project has secured key approvals and is targeted for commissioning by September 2029.
**Key Points / Main Content**
**Project Partnership and Resources**
* BCGCL is a Joint Venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), with equity holdings of 51% and 49%, respectively.
* Mahanadi Coalfields Limited (MCL) is providing approximately 350 acres of coal-bearing land for the project site.
* MCL will supply 0.79 MTY of washed coal and 1.19 MTY of reject coal from its Ib Valley washery to meet project requirements.
**Technical and Production Goals**
* The project is designed to produce 0.66 Million Tonnes Per Annum (MTPA) of Technical Grade Ammonium Nitrate.
* It utilizes domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology for commercial-scale chemical production.
* The initiative aligns with the National Coal Gasification Mission to serve as a model for future coal-to-chemical projects.
**Financials and Regulatory Status**
* The total estimated investment for the project exceeds ₹25,000 crore.
* The Ministry of Coal has granted financial incentives amounting to ₹1,350 crore.
* The project has received Single Window Clearance from the Government of Odisha’s High-Level Clearance Authority (HLCA).
* All major statutory and environmental approvals have been secured, and Lump Sum Turnkey execution packages have been awarded.
**Impact Analysis**
**Regional Youth and Local Community**
**Impact**
The project is expected to generate significant employment opportunities and promote skill development within the region. It will also drive economic growth through the development of local ancillary industries and services.
**Action Required**
Local stakeholders should prepare to engage with new vocational opportunities and service requirements as the project progresses toward its 2029 commissioning.
**Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL)**
**Impact**
As joint venture partners, these entities are responsible for the commercialization of indigenous gasification technology and the successful execution of this flagship project.
**Action Required**
The partners must manage the Lump Sum Turnkey execution packages and ensure the project adheres to the September 2029 commissioning schedule.
**Mahanadi Coalfields Limited (MCL)**
**Impact**
MCL serves as the primary provider of land and raw materials (washed coal and rejects) for the facility.
**Action Required**
MCL must ensure the consistent supply of 0.79 MTY of washed coal and 1.19 MTY of reject from the Ib Valley washery to sustain production.
**Government of India / Ministry of Coal**
**Impact**
The government is providing financial impetus through a ₹1,350 crore incentive and oversight via the National Coal Gasification Mission.
**Action Required**
The Ministry will likely monitor the project as a benchmark for future technological self-reliance and sustainable coal utilization initiatives.
Key Entities Referenced
Bharat Coal Gasification & Chemicals Limited (BCGCL): A joint venture company between Coal India Limited and Bharat Heavy Electricals Limited established to execute the landmark Coal-to-Ammonium Nitrate Project.
National Coal Gasification Mission: A national policy framework aimed at achieving energy security and self-reliance by converting domestic coal resources into value-added chemicals.
Ministry of Coal: The primary central ministry providing oversight and financial incentives of ₹1,350 crore to promote the commercialization of indigenous coal gasification technology.
Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL): The joint venture partners (holding 51% and 49% equity respectively) responsible for the funding, resource allocation, and technological implementation of the project.
Lakhanpur, Jharsuguda, Odisha: The specific geographic location where the project is being developed on 350 acres of coal-bearing land provided by Mahanadi Coalfields Limited.
Ministry of Coal
President of India Smt. Droupadi Murmu and
Prime Minister Shri Narendra Modi lays
Foundation Stone of Bharat Coal Gasification &
Chemicals Limited (BCGCL) Coal-to-Ammonium
Nitrate Project at Lakhanpur, Odisha
प्रव तथ: 20 JUN 2026 6:53PM by PIB Delhi
In a landmark step towards India's vision of achieving energy security, technological self-reliance, and
sustainable utilization of domestic coal resources, the President of India, Smt. Droupadi Murmu and Prime
Minister, Shri Narendra Modi remotely laid the foundation stone of the Coal-to-Ammonium Nitrate
Project of Bharat Coal Gasification & Chemicals Limited (BCGCL) on 20thJune 2026 at Lakhanpur in
Jharsuguda district of Odisha.
Shri Hari Babu Kambhampati, Governor of Odisha; Shri Mohan Charan Majhi, Chief Minister of Odisha;
Shri G. Kishan Reddy, Union Minister of Coal and Mines; Shri Kanak Vardhan Singh Deo, Dy. CM of
Odisha: Smt Pravati Parida, Dy. CM of Odisha; Shri Satish Chandra Dubey, Union Minister of State for
Coal and Mines, MP, MLA and other dignitaries were also present during the ceremony.
On this occasion, Union Minister of Coal and Mines, Shri G Kishan Reddy, in his press briefing at the
project site in Lakhanpur, congratulated the people of Jharsuguda for the upcoming project. This joint
venture between Coal India Ltd and BHEL marks the beginning of a new era of coal processing in the
nation, which will promote indigenous coal gasification technology and facilitate the conversion of India's
abundant coal resources into value-added chemicals. The project is expected to generate significant
employment to the regional youth, promote skill development, and drive regional economic growth
through the development of ancillary industries and services, he added.
BCGCL is a Joint Venture Company formed between Coal India Limited (CIL) and Bharat Heavy
Electricals Limited (BHEL), with CIL holding 51% equity and BHEL holding 49% equity. Mahanadi
Coalfields Limited (MCL) a subsidiary company of Coal India Limited is contributing approximate 350
acres of its coal-bearing land in Lakhanpur, Jharsuguda district of Odisha, where the BCGCL project will
be constructed. Further, MCL will meet the coal requirement for this project supplying 0.79 MTY of
washed coal and 1.19 MTY of reject from its Ib Valley washery.
Aligned with Government of India's National Coal Gasification Mission, the project is expected to serve
as a model for future coal-to-chemicals projects across the country. The project is aimed to produce
approximately 0.66 Million Tonnes Per Annum (MTPA) of Technical Grade Ammonium Nitrate through
coal gasification and represents one of India's pioneering commercial-scale initiatives utilizing
domestically developed Pressurised Fluidised Bed Gasification (PFBG) technology for chemical
production.The Project being developed at an estimated investment of over ₹25000 crore, has received Single
Window Clearance from the High-Level Clearance Authority (HLCA), Government of Odisha, and has
also been granted financial incentives of ₹1,350 crore by the Ministry of Coal, Government of India,
providing a major impetus to the commercialization of indigenous coal gasification technology.
With all key statutory and environmental approvals, major clearances in place, financial support secured,
and Lump Sum Turnkey execution packages awarded, the project is targeted commissioning schedule by
September 2029 and is expected to emerge as a flagship project demonstrating India's capability in
converting coal into high-value chemical products through indigenous technology.
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Shuhaib T
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