Coal India-BHEL's Rs 25,000-crore coal gasification project enters construction phase
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- ✓Bharat Coal Gasification and Chemicals Ltd started construction of its Rs 25,000-crore project in Odisha.
- ✓Managing director Peeyush Kumar said, "Construction has commenced and most tenders have been awarded." The plant aims to produce ammonium nitrate by 2029.
- ✓This initiative uses local coal to help reduce India's heavy import dependence.
Story at a Glance
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- BUSINESS
- Reported By
- MoneyControl
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- 2 Minute(s)
- Market Focus
- India Economy
Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Ltd and Bharat Heavy Electricals Ltd (BHEL), has begun construction of its Rs 25,000-crore coal gasification project in Odisha, with contracts worth Rs 15,000 crore awarded so far, the company's managing director Peeyush Kumar said on Thursday. The project, being developed at Lakhanpur in Odisha's Jharsuguda district, aims to produce 0.66 million tonnes of technical-grade ammonium nitrate annually by converting coal into synthesis gas and then into chemicals.
It is targeted for commissioning by September 2029, according to the Ministry of Coal. "Construction has commenced and most tenders have been awarded," Kumar said at the 17th edition of Gasification India 2026 in New Delhi on October 22. Of the Rs 15,000 crore in contracts awarded, Rs 10,000 crore has gone to BHEL and Rs 5,000 crore to Larsen & Toubro (L&T), Kumar said.
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