President Droupadi Murmu and Prime Minister Narendra Modi laid the foundation stone for India’s first commercial-scale Coal-to-Ammonium Nitrate Project at Lakhanpur in Odisha’s Jharsuguda district, marking a major milestone in the country’s coal gasification and chemical manufacturing ambitions.
The project, being developed under India’s National Coal Gasification Mission, is expected to serve as a benchmark for future coal-to-chemicals initiatives and strengthen the country’s efforts to convert domestic coal resources into high-value industrial products.
Union Coal and Mines Minister G. Kishan Reddy said the project will promote indigenous coal gasification technologies while supporting the production of value-added chemicals from locally available coal reserves.
The coal-to-ammonium nitrate facility is expected to enhance India’s energy and industrial security by reducing dependence on imports of key feedstocks and chemicals, including ammonia, methanol, urea and other industrial inputs. The initiative aligns with the government’s broader strategy to build self-reliant supply chains and strengthen domestic manufacturing capabilities.
Industry observers note that the project could generate significant opportunities for micro, small and medium enterprises (MSMEs) through demand for fabrication, engineering services, equipment manufacturing, logistics, maintenance support, chemical processing and workforce training.
The development is also expected to contribute to regional industrial growth in Odisha while advancing the objectives of the Atmanirbhar Bharat and Make in India programmes. As one of the country’s first large-scale commercial ventures in coal gasification-based chemical production, the project highlights India’s push to diversify coal utilisation beyond power generation and create a more resilient industrial ecosystem.
