BCGCL and MCL Sign Land Lease Agreement for India’s First Indigenous Coal-to-Ammonium Nitrate Proj...

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Rojgar4u Team April 03, 2026
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BCGCL and MCL Sign Land Lease Agreement for India’s First Indigenous Coal-to-Ammonium Nitrate Project
On April 1 2026, Bharat Coal Gasification and Chemicals Limited (BCGCL) and Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited (CIL), signed a landmark land lease agreement for setting up India’s first indigenous coal-to-ammonium nitrate project at Lakhanpur, Odisha.

  • The MoU was signed in the presence of Union Minister G. Kishan Reddy, Ministry of Coal and Ministry of Mines(MoM) and Vikram Dev Dutt, Secretary, Ministry of Coal, in New Delhi (Delhi).

About Coal-to-Ammonium Nitrate Project:
Agreement: The project, designed as a 2,000 tonnes per day (TPD) ammonium nitrate facility, marks a significant milestone for India’s energy and chemical sectors.
Technology: The project will use indigenously developed gasification technology by Bharat Heavy Electricals Limited (BHEL).
Investment:  The project involves an estimated investment of Rs 25,000 crore with financial support of Rs 1,350 crore from the Ministry of Coal.
Execution: Engineering, Procurement and Construction (EPC) is being implemented through Lump Sum Turnkey (LSTK) packages, with LSTK-1 and LSTK-2 awarded to Bharat Heavy Electricals Limited (BHEL) and LSTK-3 and LSTK-4 to Larsen & Toubro (L&T).
Coal Gasification: It converts coal into synthesis gas (syngas) for producing chemicals, fuels, and fertilizers.

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