Sambalpur: In a significant step towards advancing coal gasification in the country, Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) have signed a land lease agreement for a coal-to-ammonium nitrate project at Lakhanpur in Odisha, which is stated to be India’s first coal gasification project using indigenous technology.
The agreement was signed in New Delhi in the presence of Union Minister of Coal and Mines G Kishan Reddy.
The project, envisaged as a 2,000 tonnes per day ammonium nitrate facility, will deploy indigenously developed coal gasification technology by Bharat Heavy Electricals Limited (BHEL).
Spread over about 350 acres of land under MCL, the project has been enabled by policy reforms of the Ministry of Coal permitting the use of Coal Bearing Area land for coal gasification projects.
The Ministry has extended financial support of Rs 1,350 crore under its incentive scheme for coal gasification. Major LSTK packages LSTK-1 and LSTK-2 have been awarded to BHEL, while LSTK-3 and LSTK-4 have been awarded to Larsen & Toubro. Site development works, including boundary wall construction and tree enumeration, are underway.
Addressing the gathering, Reddy said the government is undertaking focused initiatives to transform the coal sector in line with the vision of Atmanirbhar Bharat, emphasising the need to utilise coal beyond conventional uses through gasification.
He said the Cabinet has approved an outlay of Rs 8,500 crore to promote coal gasification, with seven projects finalised, including three where bhoomi pujan has been completed. The Lakhanpur project, involving an investment of about Rs 25,000 crore, is the first indigenous project of BCGCL, he added.
The land lease agreement is expected to accelerate project execution and facilitate completion within the stipulated timeline.
