Bolstering the National Coal Gasification Mission, two of India’s top Maharatna CPSE entities, Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), have officially inked a joint venture agreement (JVA), signed on February 28, 2024, in Delhi. The agreement paves the way for the establishment of an ammonium nitrate plant using surface coal gasification (SCG) technology.
The plant is slated to be located in the Lakhanpur area of Mahanadi Coalfields Limited, Odisha, with an initial production capacity of 2000 tons of ammonium nitrate per day. The annual production target is an impressive 6.60 lakh tons, necessitating 1.3 million tonnes (mts) of coal, which will be supplied by CIL. BHEL will contribute its indigenously developed pressurized fluidized bed gasification (PFBG) technology for the project.
Ammonium nitrate, a key component in bulk explosives manufacturing, is extensively used by CIL in its open-cast mining (OC) operations, a cornerstone of its coal production. The forthcoming plant, serving as a form of backward integration, is poised to enhance raw material security, diminish import reliance on ammonium nitrate, and promote the Atmanirbhar Bharat Abhiyaan (Self-Reliant India Initiative).
Commenting on the venture, Shri Amrit Lal Meena, Coal Secretary, expressed confidence in the project’s potential, stating, ‘Gasification is the highest priority area for the Ministry of Coal. In the next two to three years, there will be sufficient coal.’ He further highlighted the government’s unwavering support, including financial assistance for viable gap funding.
The Joint Venture Agreement was signed by Debasish Nanda, Director (Business Development) of CIL, and Jai Prakash Srivastava, Director (Engineering, R&D) of BHEL, representing their respective companies.
Looking ahead, CIL aims to explore alternative uses of coal for environmentally friendly ventures such as coal gasification, post fulfilling the power sector’s demands. SCG technology holds promise as it converts coal into valuable Syn gas, which can be further processed into synthetic natural gas—a potential alternative to imported natural gas. Moreover, it can serve as a feedstock for downstream chemicals production and power generation.
Projects and Development India Limited, a Miniratna design engineering and consultancy company, has been tasked with preparing a detailed feasibility report for the plant. Land acquisition is currently underway and expected to be finalized by September 2024, following which construction activities will commence.
The signing ceremony of the Joint Venture Agreement was graced by M. Nagaraju, Additional Secretary of the Ministry of Coal, K. Sadashiv Murthy, CMD (BHEL), Vijay Mittal, JS of the Ministry of Heavy Industries, along with senior officials from both ministries and the collaborating companies.
