Coal India And BHEL Invite Bids For Rs 11,782 Crore Gasification Project

Bids have been invited from global and domestic companies for a Rs 11,782 crore coal gasification project in Odisha. The development follows Coal India Ltd. and BHEL incorporating a joint venture -- Bharat Coal Gasification & Chemicals Ltd., marking the foray of two PSUs into coal-to-chemical business. "BCGCL...has floated a tender document for selection of LSTK-2 (lump sum turnkey) contractor for 'Coal to Ammonium Nitrate' Project in Odisha on May 30, 2024," the coal ministry said in a statement.

The tender deals with syngas purification plant and ammonia synthesis gas plant that will purify the raw syngas produced from the coal gasifier and make it suitable for ammonia synthesis.

Both companies entered into a pact to set up the country's first commercial-scale coal-to-ammonium nitrate plant via surface coal gasification technology route.

As per the pact, the gasification plant will be based on locally developed coal gasification technology by BHEL, which utilised the high ash coal from Lakhanpur area to produce 0.66 million metric tonne per annum of technical grade ammonium nitrate.

The entire project cost, according to a pre-feasibility report is Rs 11,782 crore.

With regard to the project, 350-acre land is readily available with CIL and offtake of final product ammonium nitrate will be taken by the coal behemonth and will be used in explosive activity for mining of coal.

This will be the first commercial coal gasification plant that will showcase the indigenous coal gasification technology developed by BHEL.

The Centre has launched financial support to give a boost to coal, lignite gasification projects of public sector companies and the private sector.

"Additionally, tenders for LSTK- 3 and LSTK-4 have also been prepared and are under approval at CIL and it is expected that tenders for LSTK-3 and LSTK-4 will be floated as soon as possible," it said.