BCGCL receives nod from Odisha’s HLCA for its coal gasification project

New Delhi: Bharat Coal Gasification and Chemicals Ltd (BCGCL), the maiden coal gasification project of Coal India Limited (CIL) and Bharat Heavy Electricals Ltd (BHEL), has received an approval from Odisha’s High-Level Clearance Authority (HLCA), BCGCL Managing Director Dr Peeyush Kumar told PSU Watch. In a letter dated December 18, accessed by PSU Watch, Odisha’s IPICOL said that its HLCA has “considered the proposal of M/s Bharat Coal Gasification and Chemicals Limited to set up a manufacturing unit from High Ash Coal to Ammonium Nitrate Plant with annual capacity of 6,60,000 MT at Lakhanpur, Jharsuguda, with a total investment of Rs 11,782.05 crores and approved ‘in-principle’ the proposal with the following standard conditions.”

PSU Watch is now on Whatsapp Channels. Click here to join

BCGCL asked to submit action plan for coal gasification project in 90 days

The conditions for the grant of the approval stipulate that BCGCL submit an action plan for the implementation of the project to IPICOL within 90 days of the communication of approval from HLCA. BCGCL is also required to submit a detailed land use plan to IPICOL. The HLCA has also mandated BCGCL to use fly ash bricks for construction, rain water harvesting and ground water recharge and generate renewable power.

BCGCL

BCGCL is a joint venture company between Coal India Limited (CIL) and BHEL, wherein CIL holds 51 percent stake. It has been formed to pursue coal-to-chemicals operations. The coal gasification project is being implemented through BCGCL, a Joint Venture of CIL and BHEL formed on May 28 this year. BCGCL held its first Board meeting on June 11, during which Debasish Nanda, Director (Business Development) at Coal India, was appointed Chairman, Dr Kumar was appointed MD.

Including BCGCL’s coal gasification project, Coal India has taken up three surface coal gasification projects in MCL, Eastern Coalfields Limited (ECL) and Western Coalfields Limited (WCL) command area. The project coming up at ECL is being executed through a JV of CIL and GAIL (India) Limited, while the one at WCL is funded by Coal India itself.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)