Coal India Limited and Bharat Heavy Electricals Limited (BHEL) announced collaboration to establish an ammonium nitrate plant utilizing surface coal gasification (SCG) technology. The proposed facility, located in the Lakhanpur area of Mahanadi Coalfields Limited, Odisha, is slated to commence operations with an initial production capacity of 2,000 tons per day. The joint venture company (JVC), structured as a private limited entity, will have its equity shared in a 51:49 ratio, with Coal India holding the majority stake.
The JVC will be governed by a board comprising six directors, three nominated by BHEL and three by CIL. The projected annual production capacity of the JVC plant stands at 6.60 lakh tons, necessitating 1.3 million tons (MTs) of coal. Under the terms of the agreement, Coal India will supply the requisite coal while BHEL will contribute its domestically developed pressurized fluidized bed gasification (PFBG) technology.
This strategic partnership aligns with the National Coal Gasification Mission’s objectives, aiming to leverage coal’s chemical properties. Ammonium nitrate, a crucial ingredient for explosives used in CIL’s OC mining operations, will be manufactured at the new plant, enabling backward integration and reducing dependence on imported materials.
As reported by upstox, overall, the collaboration between these two public sector undertakings marks a significant step towards enhancing self-reliance and sustainability within the coal industry.
