Bharat Coal Gasification and Chemicals Limited (BCGCL) has moved its Rs 25,000 crore coal gasification project from planning towards physical execution.
At Lakhanpur in Odisha’s Jharsuguda district, construction activity has begun on an industrial project that could reshape how India uses its domestic coal.
The facility will mark India’s first commercial-scale deployment of indigenous gasification technology to produce technical-grade ammonium nitrate.
Its progress signals a major step towards converting domestic coal into valuable industrial chemicals. India’s coal-to-chemicals ambition is now taking shape at commercial scale.
BCGCL, a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), has started ground construction in Odisha. CIL holds a 51% stake, while BHEL owns the remaining 49%. Managing Director Peeyush Kumar confirmed the milestone as the company advanced execution of the project.
BCGCL has already awarded contracts worth Rs 15,000 crore, with the remaining packages still under consideration. The awards cover major engineering and production facilities.
• BHEL has received contracts worth Rs 10,000 crore.
• Larsen and Toubro has secured contracts worth Rs 5,000 crore.
The plant will target annual production of 0.66 million tons of technical grade ammonium nitrate.
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The project carries significance beyond its investment value. It will use domestically developed pressurized fluidized bed gasification technology, giving Indian industry a commercial application for technology developed by BHEL.
The plant will convert coal into synthesis gas, which downstream processes will use to produce ammonia, nitric acid and ammonium nitrate. This integrated process could help India reduce reliance on imported chemical inputs while creating more value from domestic coal.
The project also supports the National Coal Gasification Mission, which targets 100 million tons of coal gasification capacity by 2030. The government wants coal gasification to strengthen domestic production and reduce import dependence across several industrial sectors.
BCGCL could therefore provide a practical model for future coal to chemicals projects. Its performance will help demonstrate how indigenous technology can support industrial self-reliance.
The project strengthens Odisha’s position in India’s coal and industrial value chain. Its location in Jharsuguda places the facility close to domestic coal resources and supports the wider ambition to build more value-added industries around mining regions.
The project has also received single-window clearance from the Odisha government’s High Level Clearance Authority. That approval supports execution by bringing key state-level clearances into the project development process.
As construction progresses, the project could create opportunities for contractors, equipment suppliers, transport operators and other businesses connected with large industrial facilities. The scale of those benefits will depend on execution and the development of supporting supply chains.
BCGCL has moved beyond planning, but construction remains an important stage in a project of this scale. The company must complete the remaining contract awards and coordinate the major production packages before the facility can begin commercial operations.
BHEL will handle coal gasification and synthesis gas purification, while Larsen and Toubro will execute the ammonia synthesis and ammonium nitrate production packages. This division of work establishes the main responsibilities for the project’s next phase.
The Rs 25,000 crore coal gasification project now gives India a tangible test of its coal-to-chemicals ambition. When the plant begins producing ammonium nitrate, it could demonstrate how domestic resources and indigenous technology can strengthen India’s industrial capabilities.
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