On 20 June 2026, the President of India, Smt. Droupadi Murmu, and Prime Minister Shri Narendra Modi virtually laid the foundation stone of Bharat Coal Gasification & Chemicals Limited (BCGCL) at Lakhanpur in Jharsuguda district, Odisha. The coal-to-ammonium-nitrate project marks a historic step towards India's goals of energy security, technological self-reliance and sustainable use of domestic coal resources. The event was attended by the Governor of Odisha, the Chief Minister, the Union Coal and Mines Minister Shri G. Kishan Reddy, and other dignitaries. BCGCL is a joint venture between Coal India Limited (CIL) holding 51% and Bharat Heavy Electricals Limited (BHEL) holding 49%. Mahanadi Coalfields Limited (MCL), a CIL subsidiary, is contributing around 350 acres of coal-bearing land at Lakhanpur and will meet the project's coal requirement by supplying 0.79 MTPA washed coal and 1.19 MTPA rejected coal from its Ib Valley Washery. The project aims to produce about 0.66 million tonnes per annum (MTPA) of technical-grade ammonium nitrate through coal gasification using the indigenously developed Pressurized Fluidized Bed Gasification (PFBG) technology. Developed with an estimated investment of over Rs 25,000 crore, the project has received single-window clearance from Odisha's High-Level Clearance Authority (HLCA) and a Rs 1,350 crore financial incentive from the Ministry of Coal. Aligned with the National Coal Gasification Mission, the project is targeted for commissioning by September 2029.
President Murmu and PM Modi Lay Foundation of Bharat Coal Gasification & Chemicals Ltd in Odisha
President Murmu and PM Modi virtually laid the foundation of BCGCL, a Coal India-BHEL joint venture coal-to-ammonium-nitrate project at Lakhanpur, Odisha, to be commissioned by September 2029. The Rs 25,000 crore project uses indigenous PFBG technology and advances India's coal gasification and energy-security goals.
Key facts
- President Murmu and PM Modi virtually laid BCGCL's foundation stone at Lakhanpur, Jharsuguda, Odisha on 20 June 2026.
- BCGCL is a CIL (51%)-BHEL (49%) joint venture.
- Mahanadi Coalfields Ltd contributes ~350 acres and supplies 0.79 MTPA washed and 1.19 MTPA rejected coal from Ib Valley Washery.
- The project will produce ~0.66 MTPA technical-grade ammonium nitrate using indigenous PFBG technology.
- Estimated investment over Rs 25,000 crore; Rs 1,350 crore incentive from Ministry of Coal.
- Aligned with the National Coal Gasification Mission; targeted commissioning by September 2029.
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Which indigenously developed technology is to be used by the Bharat Coal Gasification & Chemicals Limited (BCGCL) project for chemical production?
According to the source, the BCGCL project will produce technical-grade ammonium nitrate using the indigenously developed Pressurized Fluidized Bed Gasification (PFBG) technology, making it one of India's leading commercial initiatives to use this technology for chemical production.
Source: Press Information Bureau
Frequently asked questions
Who laid the foundation stone of BCGCL and when?
President Droupadi Murmu and Prime Minister Narendra Modi virtually laid the foundation stone on 20 June 2026 at Lakhanpur, Jharsuguda district, Odisha.
What is the ownership structure of BCGCL?
BCGCL is a joint venture of Coal India Limited (CIL) with 51% and Bharat Heavy Electricals Limited (BHEL) with 49% shareholding.
What will the project produce and using which technology?
It will produce about 0.66 MTPA of technical-grade ammonium nitrate through coal gasification using the indigenously developed Pressurized Fluidized Bed Gasification (PFBG) technology.
What is the investment and target commissioning date?
The estimated investment is over Rs 25,000 crore, with a Rs 1,350 crore incentive from the Ministry of Coal, and the project is targeted for commissioning by September 2029.
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