CIL and BHEL sign a JVA for Setting Up Ammonium Nitrate Plant through Surface Coal Gasification Technology

Two of the country’s top Maharatna CPSE entities Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL)formally signed a joint venture agreement (JVA) on 28th February 2024in Delhi for setting up an ammonium nitrate plant through surface coal gasification (SCG) technology route.

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 will be 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.