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Ground construction has started on Bharat Coal Gasification and Chemicals Ltd (BCGCL)’s ₹25,000 crore coal-gasification project at Lakhanpur in Odisha. The Coal India–BHEL joint venture plans to convert domestic coal into syngas, then ammonia, nitric acid and technical-grade ammonium nitrate. About ₹15,000 crore of work has been awarded, and the stated completion target is September 2029.
Has BCGCL actually started construction?
Yes. BCGCL managing director Peeyush Kumar said on 22 October 2026 that ground construction activities had begun and that most tenders had been awarded. The Ministry of Coal’s April 2026 update also recorded progress on the boundary wall and tree enumeration at the site.
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Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →BCGCL was incorporated on 21 May 2024. The company signed its Coal Gasification Plant Development and Production Agreement on 12 March 2025, establishing the framework for the commercial-scale project.
Where is the ₹25,000 crore project located?
The plant is being built at Lakhanpur in Odisha on approximately 350 acres of land belonging to Mahanadi Coalfields. The location gives the project access to a domestic coal supply while placing the chemical-production complex within India’s wider coal-gasification programme.
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What will the Odisha plant produce?
The facility is designed around a 2,000-tonne-per-day ammonium-nitrate basis and is expected to produce approximately 0.66 million tonnes of technical-grade ammonium nitrate annually.
Its process sequence is:
- Coal is converted into synthesis gas, or syngas, in a pressurised fluidised-bed gasifier.
- Impurities are removed in the syngas-purification section.
- Purified syngas is processed into ammonia.
- Ammonia is converted into nitric acid.
- Nitric acid and ammonia are combined in the ammonium-nitrate production section.
BHEL’s indigenous pressurised fluidised-bed gasification technology is the basis of the plant. The project is therefore intended to demonstrate an Indian coal-to-chemicals route at commercial scale, rather than use coal simply for power generation.
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Approximately ₹15,000 crore of the overall ₹25,000 crore project value has been awarded. Kumar said BHEL received about ₹10,000 crore and Larsen & Toubro (L&T) about ₹5,000 crore.
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| Company | Approximate awarded value | Main responsibility |
|---|---|---|
| BHEL | ₹10,000 crore | Coal-gasification and syngas-purification packages |
| L&T | ₹5,000 crore | Ammonia-synthesis and ammonium-nitrate production packages |
The Ministry of Coal identifies these as four LSTK packages: LSTK-1 and LSTK-2 awarded to BHEL, and LSTK-3 and LSTK-4 awarded to L&T. The remaining project value has not been described in the reported award figures.
Who owns BCGCL and what support is it receiving?
Coal India owns 51% of BCGCL and BHEL owns 49%. The project was selected for ₹1,350 crore of support under the central coal-gasification scheme. That scheme has a total outlay of ₹8,500 crore, according to a Ministry of Coal response dated 2 April 2025.
The ₹1,350 crore figure is government support selected for BCGCL; it is separate from the project’s reported ₹25,000 crore investment value.
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What coal will feed the plant?
Mahanadi Coalfields is expected to supply about 0.79 million tonnes of washed coal and 1.19 million tonnes of washery rejects each year. The two feedstock streams are part of the planned operating basis for the gasification complex.
When will the plant be completed?
The stated completion date is September 2029. That date comes from the Ministry of Coal’s 2 April 2025 Lok Sabha answer and remains a target rather than a guaranteed commissioning date. Construction progress, package execution, commissioning and statutory requirements will determine whether the schedule is achieved.
How does the project fit India’s 2030 coal-gasification target?
BCGCL is part of the National Coal Gasification Mission, which targets 100 million tonnes of coal-gasification capacity by 2030. The policy objective is to turn domestic coal into chemicals and reduce reliance on imported LNG, urea, ammonia and methanol.
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Unlike a conventional mine-to-power project, Lakhanpur is structured as a coal-to-chemicals plant. Its importance for the mission will depend on whether the indigenous gasification technology performs reliably at the planned scale and whether the plant reaches commercial operation on schedule.
What is known—and not yet established—about the project?
- Construction has started and major engineering, procurement and construction packages have been awarded.
- The plant’s design basis, site, ownership, feedstock plan and September 2029 target have been publicly stated.
- Public reports do not establish an independent emissions assessment, a delivered-cost model, a financing structure, an offtake contract or a quantified project-risk analysis.
Frequently Asked Questions
When was BCGCL incorporated?
BCGCL was incorporated on 21 May 2024 as a joint venture of Coal India and BHEL. Coal India holds 51% and BHEL 49%.
What does the plant’s 2,000-tonnes-per-day basis refer to?
It is the design basis for ammonium-nitrate production. The reported annual output associated with that basis is approximately 0.66 million tonnes of technical-grade ammonium nitrate.
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- [MULTI PURPOSE PLANT FOOD]: Ideal for lawns, vegetable gardens, flowers, shrubs, trees, and landscape use as part of a regular lawn care and garden feeding routine
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- [CONVENIENT 50LB SIZE]: Ideal for large areas, bulk applications, and extended lawn or garden coverage, providing efficient and cost-effective use for bigger projects.
Which government scheme supports the Lakhanpur project?
BCGCL was selected for ₹1,350 crore under the central coal-gasification scheme, whose total outlay is ₹8,500 crore.
What agreement enabled the project to proceed?
The Coal Gasification Plant Development and Production Agreement was signed on 12 March 2025, after BCGCL’s incorporation.
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