💥Join UPSC 2027,2028 Mentorship (June Batch) + XFactor Notes & Microthemes PDF

Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

India’s First Commercial-Scale Coal-to-Ammonium Nitrate Project

Why in the news?

The Prime Minister will lay the foundation stone of India’s first commercial-scale Coal-to-Ammonium Nitrate Project at Lakhanpur, Jharsuguda district, Odisha. The project, worth ₹25,016 crore, is a major step towards energy security, import substitution, and industrial self-reliance.

Coal Gasification

  • A process that converts coal into Synthesis Gas (Syngas), mainly consisting of carbon monoxide (CO) and hydrogen (H₂).
  • Syngas can be used to produce Methanol, Urea, Ammonia, Ammonium Nitrate, Synthetic Natural Gas (SNG), Other chemical feedstocks

Lakhanpur Project

  • India’s first commercial-scale Coal-to-Ammonium Nitrate facility.
  • Developed by Bharat Coal Gasification and Chemicals Limited, a joint venture of Bharat Heavy Electricals Limited and Coal India Limited.
  • Located on about 350 acres under Mahanadi Coalfields Limited land.
  • Capacity: 2,000 tonnes/day of Ammonium Nitrate.
  • Uses indigenous coal gasification technology developed by BHEL.
  • Receives ₹1,350 crore support under the Coal Ministry’s incentive scheme.

Significance

  • Reduces dependence on imported natural gas, ammonia, methanol, and chemicals.
  • Supports Aatmanirbhar Bharat and domestic manufacturing.
  • Enhances value addition to India’s vast coal reserves (>400 billion tonnes).
  • Expected to boost downstream chemical and fertilizer industries.

[2025] Consider the following substances:
I. Ethanol
II. Nitroglycerine
III. Urea
Coal gasification technology can be used in the production of how many of them?

[A] Only one

[B] Only two

[C] All the three

[D] None


Join the Community

Join us across Social Media platforms.