Coal India Limited (CIL) formalized plans to enter the coal gasification and coal-to-chemical industry by establishing a joint venture with Bharat Heavy Electricals Limited (BHEL), named Bharat Coal Gasification and Chemicals (BCGCL).
The venture is set to produce approximately 6,60,000 tons of ammonium nitrate annually from CIL’s coal mines. The plant, located in the Lakhanpur area of Mahanadi Coalfields (MCL) in Odisha, will have a daily production capacity of 2,000 tons of ammonium nitrate.
The project, spanning 350 acres in the Lakhanpur area within the MCL zone of Jharsuguda district, will be executed in four phases. BHEL has been awarded the tender for the coal gasification unit, air separation unit (ASU), ash handling plant, coal handling plant (CHP), and cooling towers.
CIL will supply approximately 1.3 million tons of coal from its MCL mines, with the Vasundhara coal mine being a key source. The total project cost is projected to be around ₹11,782 crore, with ₹1,350 crore designated for preparing a detailed feasibility report.
Additionally, BCGCL has issued a second tender for the coal to ammonium nitrate project, with subsequent phases to be executed through further tenders. The LSTK-2 and LSTK-3 packages will handle raw gas purification, ammonia synthesis, and liquid nitrogen storage, while the LSTK-4 package will focus on nitric acid and ammonium nitrate production.
As reported by projectstoday.com, CIL has a separate joint venture with GAIL to establish a coal-to-SNG project at the Sonepur Bazari area of Eastern Coalfields (ECL) in Burdwan district, West Bengal, for which a detailed feasibility report is also being developed.
