Odisha’s upcoming coal gasification project is set to become one of India’s most important industrial investments, with the potential to meet around 35% of the country’s ammonium nitrate demand by 2030. Valued at about ₹25,016 crore, the project is being developed in Lakhanpur, Jharsuguda district, and is designed to strengthen domestic supply of a critical chemical used in mining, infrastructure and fertiliser-linked applications.
The project is being positioned as a major step toward import substitution and industrial self-reliance, reducing India’s dependence on overseas ammonium nitrate supplies. It also fits into the broader push for coal gasification, where domestic coal is converted into higher-value chemical feedstocks rather than being used only for combustion.
The facility is being executed by Bharat Coal Gasification and Chemicals Ltd, a joint venture of Coal India Ltd and BHEL, and is expected to use indigenous gasification technology. Industry reports indicate the plant is being built to produce about 2,000 tonnes of ammonium nitrate per day, making it one of the largest coal-to-chemical projects in the country.
For Odisha, the project adds to the state’s growing role as a hub for large-scale industrial and energy-linked investments. It also strengthens the state’s position in India’s emerging coal gasification ecosystem, which policymakers see as a strategic route to higher value addition, greater supply-chain security and long-term manufacturing growth.
