Mumbai, Oct. 28 -- Bharat Coal Gasification and Chemicals (BCGCL), a joint venture between Coal India and Bharat Heavy Electricals (BHEL), has started ground construction activities for its Rs. 250 bn coal gasification project in Odisha. Most tenders for the project have been awarded, according to BCGCL Managing Director Peeyush Kumar.
The development comes as India seeks to establish 100 mn t of coal gasification capacity by 2030 under the National Coal Gasification Mission. The initiative is intended to convert coal into chemicals and reduce dependence on imports of products including liquefied natural gas, urea, ammonia and methanol.
BCGCL was established to develop a commercial-scale coal-to-ammonium nitrate project using domestically developed pressurised fluidised bed gasification technology. Coal India holds a 51 per cent stake in the joint venture, while BHEL owns the remaining 49 per cent.
Contracts valued at about Rs. 150 bn have been awarded, with Rs. 100 bn allocated to BHEL and Rs. 50 bn to Larsen & Toubro (L&T). The remaining project cost consists of soft costs, including interest, depreciation and land-related expenses. The project has received single-window clearance from Odisha's high-level clearance authority.
The facility is designed to produce approximately 0.66 mn t per annum of technical-grade ammonium nitrate. Work has been divided into four major packages, with BHEL responsible for coal gasification and syngas purification, while L&T is handling ammonia synthesis and ammonium nitrate production. After purification, the gas will be converted into ammonia, followed by its conversion into nitric acid and ammonium nitrate.
Published by HT Digital Content Services with permission from Construction World.