Coal India arm, JV sign land lease pact for coal-to-chemicals project
This story was originally published at 19:05 IST on 1 April 2026
Register to read our real-time news.Informist, Wednesday, Apr. 1, 2026
KOLKATA - Coal India Ltd.'s largest subsidiary, Mahanadi Coalfields Ltd., has signed a land leasing agreement with Bharat Coal Gasification and Chemicals Ltd. for a coal-to-ammonium nitrate conversion project at Lakhanpur in Odisha, the government said Wednesday. The project entails an investment of around INR 250 billion.
While the government is actively pursuing coal gasification and coal-to-chemicals projects which will help reduce the country's dependence on energy imports and strengthen domestic capabilities, Coal India and Bharat Heavy Electricals Ltd., both state-owned companies, formed a joint venture christened Bharat Coal Gasification and Chemicals to take forward India's first coal gasification project in Lakhanpur. Ammonium nitrate is used extensively as a fertiliser and also as an explosive.
The project, spread across 350 acres, is envisaged to produce 2,000 tonnes of ammonium nitrate a day. It will use gasification technology developed indigenously by Bharat Heavy Electricals.
The coal ministry is extending financial support of INR 13.5 billion under its dedicated financial incentives scheme to promote coal gasification, the government said in a statement.
For the December quarter, on a consolidated basis, Coal India had reported a net profit of INR 71.57 billion on a revenue of INR 349.24 billion. Wednesday, its shares closed slightly lower at INR 449.40 on the National Stock Exchange. End
Reported by Avishek Rakshit
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
