India marked a historic milestone with the signing of a land leasing agreement between Mahanadi Coalfields Limited (MCL) and Bharat Coal Gasification and Chemicals Limited (BCGCL) for the country’s first indigenous Coal-to-Ammonium Nitrate project.
The facility, located at Lakhanpur in Jharsuguda district, will produce 2000 tonnes per day of ammonium nitrate using technology developed by Bharat Heavy Electricals Limited (BHEL).
Spread across 350 acres of MCL land, the project reflects India’s push toward self-reliance and reduced dependence on imported technologies. The Ministry of Coal’s progressive reforms enabled the use of Coal Bearing Area land for gasification projects, paving the way for value-added utilisation of India’s coal reserves. To support this initiative, the ministry has extended financial assistance of ₹1,350 crore under its incentive scheme.
Major lump-sum turnkey contracts have already been awarded, with BHEL handling LSTK-1 and LSTK-2, while Larsen & Toubro secured LSTK-3 and LSTK-4. Site development activities, including boundary wall construction and tree enumeration, are underway to ensure timely execution.
Union Minister for Coal and Mines G. Kishan Reddy, present at the signing ceremony in New Delhi, emphasised that the project aligns with the Prime Minister’s vision of Atmanirbhar Bharat. He highlighted the Cabinet’s approval of ₹8,500 crore for coal gasification, with seven projects finalised and three already in the foundation stage.
The ₹25,000 crore investment in the MCL–BCGCL agreement represents a major step forward, showcasing India’s technological progress, policy reforms, and industrial resilience. The Jharsuguda project is expected to accelerate coal sector diversification and contribute significantly to long-term economic growth.
