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Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), two of India's major Maharatna CPSEs, have signed a joint venture agreement (JVA) to develop an ammonium nitrate facility in Odisha. The facility, which will use surface coal gasification (SCG) technology, will be located in Mahanadi Coalfields Limited's Lakhanpur region.
The facility is designed to manufacture 2000 tonnes of ammonium nitrate daily, for an annual output of 6.60 lakh tonnes, using 1.3 million tonnes of CIL-supplied coal. The project will benefit BHEL's indigenously developed pressurised fluidized bed gasification (PFBG) technology. The collaboration and partnership of the two corporate behemoths is a significant step towards the National Coal Gasification Mission, which enables using coal's chemical qualities.
Ammonium nitrate is extensively used by CIL for bulk explosives in open-cast mining operations, a critical component of its coal production strategy. This venture not only aims at backward integration to secure essential raw materials but also intends to reduce import dependency on ammonium nitrate, aligning with the government's Atmanirbhar Bharat Abhiyaan.
Coal secretary Amrit Lal Meena emphasized the project's potential to serve as a benchmark, highlighting gasification as a priority for the coal sector. To ensure the project's success, he assured comprehensive government support, including financial backing for viable gap funding.
The JVA was signed by Debasish Nanda, Director (Business Development) of CIL, and Jai Prakash Srivastava, Director (Engineering, R&D) of BHEL. The initiative reflects CIL's commitment to exploring environmentally friendly alternatives to coal usage, particularly in coal gasification, after meeting the power sector's demands.
SCG technology offers a pathway to convert coal into valuable synthetic gas, which can be processed into synthetic natural gas as an alternative to natural gas. It also provides feedstock for producing downstream chemicals that are currently imported and can be utilized for power generation.
Projects and Development India Limited, a Miniratna design engineering and consultancy firm, has been tasked with preparing a detailed feasibility report for the project. With land acquisition set to conclude by September 2024, construction activities are expected to commence shortly thereafter.
The signing ceremony was attended by M. Nagaraju, Additional Secretary, MoC, K. Sadashiv Murthy, CMD (BHEL), Vijay Mittal, JS, Ministry of Heavy Industries, and other senior officials from both ministries and the promoting companies.
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