The Rs 25,016-crore coal gasification-based ammonium nitrate project at Lakhanpur in Odisha’s Jharsuguda district is progressing as per schedule and is expected to be commissioned by March 2030, Union Minister of State for Coal and Mines Satish Chandra Dubey informed the Lok Sabha. He also said the proposed Stage-II expansion of the IB Thermal Power Station at Banharpalli is currently under the bidding process.
In a written response to a query from Bargarh MP Pradeep Purohit, the minister stated that on June 20, 2026, the President and the Prime Minister jointly lay the foundation stone for the coal gasification project and the 2×660 MW Stage-II extension of the IB Thermal Power Station. According to Dubey, the Odisha Power Generation Corporation Limited (OPGC) is carrying out the thermal power expansion project, while Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), is carrying out the coal gasification project.
The coal gasification project has obtained all necessary statutory permits, including environmental clearance and Consent to Establish from the relevant authorities, the minister told the House. Site development work is underway, and major Engineering, Procurement, and Construction (EPC) contracts have already been granted. The project will use BHEL’s domestic Pressurised Fluidised Bed Gasification (PFBG) technology to build a 0.66 million metric tonnes per annum (MMTPA) coal-to-ammonium nitrate facility. The principal EPC packages have been awarded to BHEL and Larsen & Toubro (L&T), while Projects and Development India Limited (PDIL) has been designated as the project management consultant.
The minister described the project as a significant turning point in India’s efforts to use clean coal, saying it would support domestic coal gasification technology and greatly increase domestic production of ammonium nitrate, a crucial industrial chemical used extensively in the mining and infrastructure sectors. Regarding the projected Stage-II extension of the IB Thermal Power Station, Dubey stated that as the bidding procedure is still in progress, the project’s cost, execution schedule, and contractor have not yet been determined.