Bhubaneswar, March 24: The Coal India Limited (CIL) is going to set up two non-coking coal washeries and a coal gasification based ammonium nitrate plant in Odisha.
As per a statement given by Union Minister of State for Coal and Mines, Satish Chandra Dubey in Parliament, the Coal India Limited (CIL) has planned to establish two additional non-coking coal washeries in Mahanadi Coalfields Limited (MCL) in Odisha. Tentative capacity of these washeries is 27 million tonnes per annum (MTPA) at Balaram-Hingula mines: 15MTY and Int Kulda – Garjanbahal: 12MTY, he said.
Similarly, a coal gasification based ammonium nitrate plant is being set up in Lakhanpur by Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture company of CIL and Bharat Heavy Electricals Limited (BHEL). The project is expected to be commissioned in the Financial Year 2029-30, the Union Minister said.
Maharatna CPSE entities Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL)had formally signed a joint venture agreement (JVA) on 28 February 2024in Delhi for setting up the ammonium nitrate plant through surface coal gasification (SCG) technology route. . in the JV, Coal India Limited (CIL) holds 51% and BHEL holds 49% equity.
The plant to come up in Lakhanpur area of Mahanadi Coalfields Limited, Odisha is planned to produce 2000 tons of ammonium nitrate per day initially. The annual production is slated at 6.60 Lakh tons which requires 1.3 million tonnes (mts) of coal.
The coal supplied by CIL.BHEL would bring to the table indigenously developed pressurized fluidized bed gasification (PFBG) technology for this purpose. The synergy and partnership of the two corporate giants is a big step towards National Coal Gasification Mission which facilitates utilization of chemical properties of coal.
Ammonium nitrate is a major ingredient in manufacturing of bulk explosives which CIL uses in large quantities in its OC mining operations, a major source of its coal production. The upcoming plant as backward integration would help in securing the raw material, reducing import dependency of ammonium nitrate and promoting Atmanirbhar Bharat Abhiyaan.
The entire project cost would be Rs 11, 782 Crores. Projects and Development India Limited, a Miniratna design engineering and consultancy company has been assigned the work for preparing a detailed feasibility report of the plant, sources said.
The project has been envisaged in such a manner that no stone is left untouched, a land of around 350 acre is readily available with the CIL and off-take of final product Ammonium Nitrate will be taken by CIL and will be used in explosive activity for mining of coal. This will be the first commercial Coal gasification plant that showcases the indigenous coal gasification technology developed by BHEL, the source said.
In his statement, the Coal Minister further said that the movement of raw coal to other states for washing or end-use is guided by logistical efficiency and proximity to consuming centres.
While such transportation may shift certain value addition activities outside Odisha, the state continues to receive revenue through royalties, District Mineral Foundation (DMF) contributions and other statutory levies on coal production.
The government has taken multiple steps to ensure that coal-bearing districts of Odisha derive economic and employment benefits, including direct employment by MCL to the eligible members of displaced/affected families in accordance with the Odisha R&R Policy, 2006, or preferential allotment of certain contracts (like coal transportation) to them as well as skill development, he said.
Employment benefits have been given to 300 project-affected families in 2023-24, 315 in 2024-25 and 447 in 2025-26 (till date), he added.
As many as 3,688 youth have been trained, with about 2,900 placements under CSR initiatives of the MCL.
Significant investments has been made by the MCL in infrastructure, healthcare, education, women empowerment and livelihood projects, with over Rs1,000 crore spent in the last five years under CSR initiatives largely in Angul, Jharsuguda, Sambalpur and Sundargarh districts, said Dubey.
