THEBUSINESSBYTES BUREAU
NEW DELHI, JULY 22, 2026
The ₹25,016-crore coal gasification-based ammonium
nitrate project at Lakhanpur in Odisha's Jharsuguda district is progressing on schedule and is expected to
be commissioned by March 2030, providing a major fillip to India's clean coal
utilisation strategy, domestic chemical production and industrial growth.
Replying to a question by Bargarh MP Pradeep Purohit in the
Lok Sabha, Union Minister of State for Coal and Mines Satish Chandra Dubey on
Wednesday said the mega project is advancing as planned, while the proposed
2×660 MW Stage-II expansion of the IB Thermal Power Station at Banharpalli is
currently under the bidding process.
The minister informed the House that the foundation stone for
both projects was jointly laid by the President and the Prime Minister on June
20, 2026, marking a significant milestone in Odisha's industrial and energy
infrastructure development.
Dubey said the coal gasification project is being implemented
by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture
between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL),
while the thermal power expansion is being executed by the Odisha Power
Generation Corporation Limited (OPGC).
The minister said the coal gasification project has already
secured all major statutory approvals, including environmental clearance and
Consent to Establish from the competent authorities. Key Engineering,
Procurement and Construction (EPC) contracts have been awarded, and site
development activities are currently underway.
The project will establish a 0.66 million metric tonnes per
annum (MMTPA) coal-to-ammonium nitrate plant using BHEL's indigenous
Pressurised Fluidised Bed Gasification (PFBG) technology. Projects and
Development India Limited (PDIL) has been appointed as the Project Management
Consultant, while BHEL and Larsen & Toubro (L&T) have secured the major
EPC packages.
Describing the initiative as a landmark in India's clean coal
utilisation programme, Dubey said "the project would promote indigenous
coal gasification technology and significantly enhance domestic production of
ammonium nitrate, an essential industrial chemical widely used in the mining
and infrastructure sectors."
On the proposed Stage-II expansion of the IB Thermal Power
Station, the minister said "the project's cost, execution timeline and
contractor are yet to be finalised as the bidding process is still underway."
The minister further informed Parliament that the coal
gasification project is expected to generate around 2,000 direct and indirect
employment opportunities. Skilled, semi-skilled and unskilled workers will be
engaged according to project requirements, with preference being given to
eligible local youth in line with the government's policies.
The twin projects are expected to accelerate industrialisation in western Odisha, strengthen the state's power infrastructure and create significant employment opportunities in the mineral-rich Jharsuguda region.
Once operational, the coal gasification plant is expected to reduce India's dependence on imported ammonium nitrate, strengthen supply security for the mining and infrastructure sectors, and advance the country's goal of greater self-reliance in strategic industrial chemicals.
