Kishan Reddy at ₹25,016 Cr Coal-to-Chemicals Plant Launch in Odisha
Synopsis
Union Coal Minister G. Kishan Reddy, alongside President Droupadi Murmu and PM Narendra Modi, laid the foundation stone of BCGCL — India's first commercial coal-to-ammonium nitrate plant — in Jharsuguda, Odisha. The ₹25,016 crore CIL-BHEL project advances India's coal gasification mission and the Purvodaya development agenda for eastern India.
Key Takeaways
BCGCL is India's first commercial-scale Coal-to-Ammonium Nitrate project, located at Lakhanpur, Jharsuguda district, Odisha .
The project is valued at ₹25,016 crore and is being developed jointly by Coal India Limited and BHEL .
The foundation stone was laid on 20 June 2026 in the presence of President Droupadi Murmu and Prime Minister Narendra Modi .
The facility will produce value-added products including ammonium nitrate, methanol, hydrogen and other industrial feedstocks from domestic coal.
The project aligns with the national coal gasification target of 100 million tonnes capacity by 2030 and the Purvodaya framework for eastern India's development.
PM Modi highlighted investments in infrastructure, housing, education, drinking water, financial inclusion and tribal welfare as pillars of Odisha's transformation.
Union Coal and Mines Minister G. Kishan Reddy attended the foundation stone laying ceremony of Bharat Coal Gas and Chemicals Limited (BCGCL) — India's first commercial-scale Coal-to-Ammonium Nitrate project — at Lakhanpur in Jharsuguda district, Odisha, on Saturday, 20 June 2026. The ceremony was held in the presence of President Droupadi Murmu and Prime Minister Narendra Modi.
Context
The ₹25,016 crore project is being developed jointly by Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), two of India's largest public sector enterprises. Minister Reddy described it as 'a historic step towards converting India's abundant coal resources into value-added products such as ammonium nitrate, methanol, hydrogen and other industrial feedstocks.'
President Droupadi Murmu — the first woman from a tribal community to hold India's highest constitutional office — used the occasion to highlight development initiatives and welfare programmes transforming lives in Odisha and across the country. Prime Minister Narendra Modi reiterated the vision of Purvodaya (development of Eastern India), framing it as a key driver of Viksit Bharat (Developed India).
Policy Backdrop
The BCGCL project sits within a broader national coal gasification mission, under which the Ministry of Coal has targeted 100 million tonnes of coal gasification capacity by 2030. The strategy aims to reduce India's import dependence on ammonia, methanol and fertilisers by monetising the country's vast domestic coal reserves.
The Purvodaya framework, articulated in 2024, channels focused investments in infrastructure, housing, education, drinking water, financial inclusion and tribal welfare into eastern states including Odisha, Jharkhand and Chhattisgarh — all mineral-rich regions where coal-linked industrial growth can help narrow longstanding regional development gaps.
Joint ventures between Coal India and equipment manufacturers such as BHEL have emerged as the standard delivery model for large-scale coal-to-chemicals projects, combining CIL's mining and feedstock access with BHEL's engineering capacity.
Stakeholders and Impact
The project is expected to benefit coal mining communities in and around Jharsuguda, one of Odisha's key coal-bearing districts. By producing ammonium nitrate domestically, the facility could reduce the chemical industry's reliance on costly imports, with downstream effects on fertiliser availability and industrial supply chains.
Tribal communities in the region stand to gain from the welfare and employment dimensions of the Purvodaya agenda that Prime Minister Modi highlighted at the ceremony. President Murmu's presence at the event carried symbolic weight, given her own tribal roots and Odisha's large Scheduled Tribe population.
What's Next
Attention will now turn to construction milestones and land acquisition notifications for the BCGCL facility. The government is also expected to push fresh coal gasification bids in other coalfields as it works towards the 2030 capacity target. Progress at Lakhanpur will be closely watched as a bellwether for India's broader coal-to-chemicals ambitions and the Purvodaya investment pipeline across eastern India.
Point of View
The Prime Minister and a senior Union Minister simultaneously in Odisha signals the ruling dispensation's intent to consolidate its foothold in a state it won decisively in 2024. The ₹25,016 crore project gives the Purvodaya narrative a concrete, photogenic anchor in the mineral belt. For the coal ministry, it also provides a visible answer to critics who argue that the energy transition will strand coal assets: by converting coal into chemicals, the government repositions the sector as a feedstock economy rather than a sunset industry. Whether BCGCL can meet its construction and production milestones will determine how durable that narrative proves to be.
NationPress
21 Jun 2026
Frequently Asked Questions
What is BCGCL and where is it located?
Bharat Coal Gas and Chemicals Limited (BCGCL) is India's first commercial-scale Coal-to-Ammonium Nitrate project, located at Lakhanpur in Jharsuguda district, Odisha. Its foundation stone was laid on 20 June 2026.
What is the cost of the BCGCL coal-to-chemicals project?
The BCGCL project is valued at ₹25,016 crore and is being developed as a joint venture between Coal India Limited and Bharat Heavy Electricals Limited (BHEL).
What products will the BCGCL plant produce?
The plant will convert coal into value-added products including ammonium nitrate, methanol, hydrogen and other industrial feedstocks, reducing India's dependence on imports of these chemicals.
What is the Purvodaya vision mentioned at the BCGCL event?
Purvodaya is Prime Minister Narendra Modi's framework for accelerated development of eastern India — covering states like Odisha, Jharkhand and Chhattisgarh — through focused investments in infrastructure, housing, education, tribal welfare and industry.
What is India's coal gasification target by 2030?
India's Ministry of Coal has set a target of achieving 100 million tonnes of coal gasification capacity by 2030, with projects like BCGCL forming a key part of that mission.
