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BCGCL–MCL’s Bold Land Lease Ignites India’s Biggest Coal-to-Ammonium Nitrate Project in Odisha

Soniya Gupta

BCGCL

BCGCL and Mahanadi Coalfields Limited have signed a land leasing agreement for a Coal-to-Ammonium Nitrate project in Lakhanpur, advancing India’s coal gasification initiative. The project, worth approximately Rs 25,000 crore, plans to create a 2,000 tonnes per day ammonium nitrate facility using technology from Bharat Heavy Electricals Limited, marking India’s first indigenous coal gasification project. Spanning around 350 acres, it comprises several engineering packages, with initial development already in progress. Backed by Rs 1,350 crore from the Ministry of Coal, the initiative aims to enhance domestic coal utilization.

Ammonium Nitrate Project In Odisha

Reduce imports, and bolster India’s industrial and chemical sectors, ultimately contributing to a self-reliant energy and chemicals framework The signing of the land lease agreement between BCGCL and MCL for a massive ₹25,000 crore coal-to-ammonium nitrate project in Odisha marks a transformative moment in India’s industrial and energy sector. This strategic collaboration reflects a strong push towards utilizing domestic coal resources more efficiently while reducing dependence on imports of critical industrial chemicals. As India continues to expand its infrastructure, mining, and construction sectors, the demand for ammonium nitrate has been rising steadily.

This project aims to address that demand through a sustainable and localized production model, ensuring long-term economic and industrial benefits The project is part of India’s broader coal gasification mission, which focuses on converting coal into valuable chemical products rather than simply burning it for power generation. This approach not only enhances the value derived from coal but also aligns with modern industrial practices that emphasize efficiency and reduced environmental impact. By converting coal into ammonium nitrate, the project creates a direct supply chain for industries such as mining, road construction, and defense.

key Industrial Hub, Attracting Investments Across

This reduces logistical costs and strengthens domestic supply chains, which is crucial for a growing economy like India Odisha has been chosen as the location for this mega project due to its abundant coal reserves and established mining ecosystem. The state has been emerging as a key industrial hub, attracting investments across sectors including steel, aluminum, and now advanced chemical manufacturing. With this new project, Odisha is expected to further strengthen its position as a leading destination for industrial growth. The presence of MCL, a major coal producer, ensures a steady supply of raw material, which is essential for the smooth functioning of such a large-scale operation.