India’s First Coal-to-Ammonium Nitrate Plant Breaks Ground in Odisha
Jharsuguda, Odisha: In a landmark step toward industrial self-reliance, India has launched its first indigenous Coal-to-Ammonium Nitrate project at Lakhanpur, Jharsuguda.
The project is a collaboration between Mahanadi Coalfields Limited (MCL) and Bharat Coal Gasification and Chemicals Limited (BCGCL), with technology support from Bharat Heavy Electricals Limited (BHEL).
Spread across 350 acres of MCL land, the facility will produce 2,000 tonnes of ammonium nitrate per day.
The Ministry of Coal has extended Rs 1,350 crore in financial assistance, while the Union Cabinet has approved Rs 8,500 crore for coal gasification projects nationwide.
Contracts have been awarded to BHEL for LSTK-1 and LSTK-2, and Larsen & Toubro (L&T) for LSTK-3 and LSTK-4. Site development work, including boundary wall construction and tree enumeration, is already underway.
The MCL–BCGCL agreement represents a Rs 25,000 crore investment, underscoring India’s push for diversification in the coal sector.
The project is aligned with the government’s Atmanirbhar Bharat vision, aiming to reduce import dependence, boost technological innovation, and strengthen industrial resilience.
Officials emphasize that the project will not only enhance India’s energy security but also contribute significantly to long-term economic growth.
