India’s First Coal Gasification-Based Ammonium Nitrate Plant Planned in Odisha

Bhubaneswar/New Delhi: A major industrial boost is on the horizon for Odisha with the signing of a key agreement for a large-scale ammonium nitrate project in Jharsuguda. The project, to be set up in Lakhanpur, is expected to attract an investment of around ₹25,000 crore.

The agreement was signed between Coal Gasification and Chemicals Limited and Mahanadi Coalfields Limited for leasing land required to establish the facility. The signing took place in New Delhi in the presence of Union Coal and Mines Minister G. Kishan Reddy.

The project will come up on nearly 350 acres of land under MCL and is being developed as India’s first coal gasification-based ammonium nitrate plant. It will use indigenous technology developed by Bharat Heavy Electricals Limited, marking a significant step toward self-reliance in the chemicals and energy sector.

Once operational, the plant is expected to produce around 2,000 tonnes of ammonium nitrate per day. The project is being implemented by Coal Gasification and Chemicals Limited, a joint venture involving BHEL and Coal India Limited. Engineering and development work has been assigned to BHEL and Larsen & Toubro, with groundwork already underway at the site.

Officials indicated that preparatory work, including land development and infrastructure setup, is progressing, with a target to complete the project within 42 months.

The initiative is expected to significantly reduce India’s dependence on imported ammonium nitrate while strengthening domestic manufacturing capabilities. It is also likely to generate employment and support industrial growth in the region, positioning Odisha as a key hub for advanced industrial projects.