Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL) have signed a land leasing agreement for the proposed coal-to-ammonium nitrate project at Lakhanpur in Odisha.
The project, planned as a 2,000 tonnes per day ammonium nitrate facility, will be developed on around 350 acres of MCL land and marks India’s first coal gasification project to use indigenously developed gasification technology by Bharat Heavy Electricals Limited (BHEL). The Ministry of Coal has extended financial support of Rs 13.5 billion for the project under its coal gasification incentive scheme. Major lump sum turnkey (LSTK) packages LSTK-1 and LSTK-2 have been awarded to BHEL, while LSTK-3 and LSTK-4 have been awarded to Larsen & Toubro. The project involves an estimated investment of about Rs 250 billion.