Odisha Coal Project To Cut AN Imports
A ₹25,016-crore coal gasification project in Odisha is expected to meet nearly 35% of India’s projected ammonium nitrate demand by 2030, strengthening domestic supply of a key industrial and fertiliser-linked chemical.
Odisha Coal Gasification Project
The project is coming up at Lakhanpur in Jharsuguda district and is being developed by Bharat Coal Gasification and Chemicals Limited, a joint venture of Coal India Limited and Bharat Heavy Electricals Limited.
It will use indigenous coal gasification technology to convert locally available coal into synthesis gas, which will then be processed into ammonium nitrate. The facility is planned as India’s first commercial-scale coal-to-ammonium nitrate project.
India Ammonium Nitrate Demand
Industry estimates suggest the project could reduce India’s ammonium nitrate imports by around 0.66 million tonnes annually once operational. This could generate foreign exchange savings of more than $360 million every year.
Ammonium nitrate is used in fertilisers and industrial explosives, especially in mining and infrastructure sectors. A stable domestic supply is expected to support critical industries and reduce exposure to global supply disruptions.
Lakhanpur Coal-To-Chemicals Plant
The Lakhanpur facility is expected to produce 2,000 tonnes of ammonium nitrate per day. The project will come up on about 350 acres and has received key clearances, with work expected to begin after the foundation ceremony.
The initiative is part of India’s broader coal gasification push, which aims to use domestic coal for value-added products such as methanol, ammonia, urea and industrial chemicals. The government has approved incentives to promote similar surface coal and lignite gasification projects across coal-bearing regions.
