Bharat Coal Gasification and Chemicals Ltd started construction of its Rs 25,000-crore project in Odisha. Managing director Peeyush Kumar said, "Construction has commenced and most tenders have been awarded." The plant aims to produce ammonium nitrate by 2029. This initiative uses local coal to help reduce India's heavy import dependence.

Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Ltd and Bharat Heavy Electricals Ltd (BHEL), has begun construction of its Rs 25,000-crore coal gasification project in Odisha, with contracts worth Rs 15,000 crore awarded so far, the company's managing director Peeyush Kumar said on Thursday. The project, being developed at Lakhanpur in Odisha's Jharsuguda district, aims to produce 0.66 million tonnes of technical-grade ammonium nitrate annually by converting coal into synthesis gas and then into chemicals. It is targeted for commissioning by September 2029, according to the Ministry of Coal. "Construction has commenced and most tenders have been awarded," Kumar said at the 17th edition of Gasification India 2026 in New Delhi on October 22. Of the Rs 15,000 crore in contracts awarded, Rs 10,000 crore has gone to BHEL and Rs 5,000 crore to Larsen & Toubro (L&T), Kumar said. BHEL is executing the coal gasification and syngas purification packages, while L&T is handling the ammonia synthesis and ammonium nitrate production packages. The project is among India's first commercial-scale initiatives to use indigenous pressurised fluidised bed gasification technology for chemical production. Coal India holds a 51% stake in BCGCL, while BHEL owns the remaining 49%. Mahanadi Coalfields Ltd, a Coal India subsidiary, will supply about 0.79 million tonnes of washed coal and 1.19 million tonnes of washery rejects annually for the project, according to the Ministry of Coal. The ministry has also extended financial assistance of Rs 1,350 crore. The project is part of the government's broader push to gasify 100 million tonnes of coal annually by 2030 and reduce import dependence on products such as ammonia, urea, methanol and natural gas. Coal gasification converts coal into synthesis gas, or syngas, which can be processed into chemicals, fuels and other industrial products. The government is promoting the technology to increase the value derived from domestic coal reserves and expand domestic production of industrial feedstocks.