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

Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) have signed a joint venture agreement (JVA) on 28th February 2024 in Delhi for setting up an ammonium nitrate plant through surface coal gasification technology (SCG) route. The plant will be located in the Lakhanpur area of Mahanadi, which is a district in the state of Chhattisgarh, India.

The JVA was signed in the presence of Shri Pralhad Joshi, Union Minister for Coal and Steel, and Shri Ravi Shankar Prasad, Union Minister for Heavy Industries and Public Enterprises. The agreement is expected to pave the way for the development of a world-class ammonium nitrate plant in India, which will help meet the growing demand for fertilizers in the country.

The surface coal gasification technology (SCG) route involves converting coal into syngas through a process that does not require water or oxygen. The syngas is then used to produce ammonium nitrate, which is a crucial component of fertilizers. This technology has several advantages over traditional methods, including lower emissions and higher efficiency.

CIL and BHEL have been working together for several years to develop and implement innovative technologies in the coal sector. The JVA for setting up an ammonium nitrate plant through SCG technology is a significant step forward in this direction. The plant will be designed and built by BHEL, while CIL will provide the necessary coal feedstock and other support services.

The project is expected to create employment opportunities for thousands of people in the local community and contribute to the growth of the region's economy. It will also help India become more self-sufficient in terms of fertilizer production, reducing its dependence on imports and contributing to food security.