Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Ltd (CIL) and BHEL, has commenced ground construction activities for its ₹25,000 crore coal gasification project in Odisha. This significant development aligns with India's goal to establish 100 million tonnes of coal gasification capacity by 2030 under the National Coal Gasification Mission.

Project Overview

The mission aims to convert coal into chemicals, thereby reducing dependence on imports of products such as LNG, urea, ammonia, and methanol. Peeyush Kumar, Managing Director of BCGCL, announced the start of construction during the 17th Edition of Gasification India 2026, organized by the Mission Energy Foundation.

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"We are going ahead with the joint venture of BHEL and Coal India, which is BCGCL....I am happy to share that we have started ground construction activities... Most of the tenders have been awarded and construction has started," Kumar stated.

Financial Breakdown

BCGCL, where CIL holds a 51% stake and BHEL holds 49%, is set to develop a state-of-the-art coal-to-ammonium nitrate project. Kumar revealed that contracts worth approximately ₹15,000 crore have already been awarded, with tenders for the remaining works still pending.