Bhubaneswar: The ambitious coal gasification-based ammonium nitrate initiative in Lakhanpur, located in Odisha’s Jharsuguda district, is progressing well and is slated for completion by March 2030, according to Union Minister of State for Coal and Mines, Satish Chandra Dubey, who addressed the Lok Sabha on Wednesday.
Additionally, Dubey mentioned that the bidding process for the proposed Stage-II expansion of the IB Thermal Power Station at Banharpalli is currently ongoing.
In response to an inquiry from Bargarh MP Pradeep Purohit, the minister revealed that the foundation stone for both the coal gasification project and the 2×660 MW Stage-II expansion of the IB Thermal Power Station was ceremoniously laid by the President and Prime Minister on June 20, 2026.
Dubey noted that Bharat Coal Gasification and Chemicals Limited (BCGCL), a partnership between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), is spearheading the coal gasification project, while the Odisha Power Generation Corporation Limited (OPGC) is managing the thermal power expansion.
He informed the House that all necessary statutory approvals, including environmental clearances and the Consent to Establish from relevant authorities, have been obtained for the coal gasification project. Significant Engineering, Procurement and Construction (EPC) contracts have been awarded, and development work at the site is actively underway.
The initiative aims to establish a coal-to-ammonium nitrate plant with a capacity of 0.66 million metric tonnes per annum (MMTPA) using BHEL’s proprietary Pressurised Fluidised Bed Gasification (PFBG) technology. Projects and Development India Limited (PDIL) has been designated as the Project Management Consultant, while BHEL and Larsen & Toubro (L&T) have secured major EPC contracts.
Dubey characterized the project as a pivotal achievement in advancing clean coal utilization in India, promoting domestic coal gasification technology while significantly boosting the local production of ammonium nitrate, a crucial chemical used extensively in mining and infrastructure.
Regarding the Stage-II expansion of the IB Thermal Power Station, the minister indicated that the project’s costs, timelines, and contractors are still under consideration as the bidding process is ongoing.
Furthermore, Dubey highlighted that the coal gasification project is anticipated to create approximately 2,000 direct and indirect jobs. The workforce will comprise skilled, semi-skilled, and unskilled labor, with a focus on hiring local youth in accordance with government policies.
These two projects are poised to significantly enhance industrialization in western Odisha, bolster the state’s power infrastructure, and generate employment opportunities in the mineral-rich Jharsuguda area.
Upon becoming operational, the coal gasification facility is expected to decrease reliance on imported ammonium nitrate and support the nation’s objective of achieving greater self-sufficiency in the chemicals and mining industries.
