PM Modi To Launch Odisha Coal Project
Prime Minister Narendra Modi will lay the foundation stone for India’s first commercial-scale coal-to-ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district on June 20. The ₹25,016 crore project is being positioned as a major step towards energy security, import substitution and industrial self-reliance.
India’s First Coal-To-Ammonium Nitrate Project
The Lakhanpur project will be developed by Bharat Coal Gasification and Chemicals Limited, 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 indigenously developed coal gasification technology. Ammonium nitrate is widely used in mining, infrastructure and industrial applications, making domestic production important for reducing import dependence.
Odisha Coal Gasification Project
The project will come up on about 350 acres of land under Mahanadi Coalfields Limited. Required clearances have been received, and work is expected to begin after the foundation stone ceremony.
Coal gasification converts coal into synthesis gas, which can be used to produce chemicals such as methanol, urea, ammonium nitrate and synthetic natural gas. The government sees the technology as a way to add value to India’s domestic coal reserves while supporting downstream industries.
India Import Substitution Push
India currently imports large quantities of chemical products and feedstocks. The coal-to-ammonium nitrate project is expected to help reduce dependence on imported raw materials and support domestic manufacturing.
The Centre has approved major incentive support for coal and lignite gasification projects across the country. The Lakhanpur facility is expected to serve as a model for future coal gasification ventures and strengthen India’s push for self-reliant industrial growth.
