Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL), has commenced on-ground construction activities for its Rs 25,000 crore coal gasification project in Odisha, with contracts worth approximately Rs 15,000 crore already awarded.
BCGCL Managing Director Peeyush Kumar announced the development at the 17th edition of Gasification India 2026, organised by the Mission Energy Foundation. He said most tenders had been awarded and construction work had begun, while contracts for the remaining works were yet to be finalised.
Of the contracts awarded so far, BHEL has secured work worth approximately Rs 10,000 crore, while Larsen & Toubro (L&T) has received contracts worth around Rs 5,000 crore. The overall project cost also includes expenses such as interest, depreciation and land-related costs.
BCGCL was established as a joint venture to develop a commercial-scale coal-to-ammonium nitrate facility, with Coal India holding a 51% stake and BHEL owning the remaining 49%.
The project is designed to produce approximately 0.66 million tonnes per annum (MTPA) of technical-grade ammonium nitrate using coal gasification. It is among India’s pioneering commercial-scale initiatives to use domestically developed pressurised fluidised bed gasification technology for chemical production.
The project has been divided into four major packages. BHEL is responsible for coal gasification and synthesis gas (syngas) purification, while L&T is executing the ammonia synthesis and ammonium nitrate production packages.
Under the process, coal will be converted into syngas, which will undergo purification before being processed into ammonia. The ammonia will then be used to produce nitric acid and ammonium nitrate.
The project aligns with the National Coal Gasification Mission, which aims to establish 100 million tonnes of coal gasification capacity by 2030. The initiative seeks to convert domestic coal into value-added chemicals and reduce India’s dependence on imports of products such as liquefied natural gas (LNG), urea, ammonia and methanol.
The Odisha project has received single-window clearance from the state government’s High-Level Clearance Authority. Once operational, the facility is expected to strengthen domestic ammonium nitrate production and support the country’s broader coal-to-chemicals and industrial self-reliance objectives.
