Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) have signed a land leasing agreement for setting up a coal-to-ammonium nitrate project at Lakhanpur in Odisha, marking a significant step toward boosting coal gasification-based industries in the country.
The project will come up in the Lakhanpur area of Odisha, with MCL leasing land to BCGCL for establishing the facility. The initiative aligns with the Government’s push to promote coal gasification as part of efforts to reduce dependence on imported natural gas and enhance value addition from domestic coal.
BCGCL—a joint venture involving Coal India Limited, GAIL (India) Limited, and Rashtriya Chemicals and Fertilizers Limited—will develop the project to convert coal into ammonium nitrate, a key input used in fertilisers and mining explosives.
Officials said the agreement is expected to:
- Promote import substitution of ammonium nitrate
- Boost industrial development in Odisha
- Generate employment opportunities in the region
The coal-to-ammonium nitrate plant is part of India’s broader strategy to diversify coal usage beyond power generation and move toward cleaner, value-added applications. The agreement is being seen as a milestone in advancing the country’s coal gasification roadmap and strengthening downstream chemical industries.