Odisha coal gasification project to meet 35 pc of India's ammonium nitrate needs by 2030: Industry

Business To Business, New Delhi, 20^th June, 2026:  A ₹25,016-crore coal gasification project in Odisha, whose foundation stone was laid on Saturday, is expected to play a significant role in meeting India's future industrial requirements.
According to industry experts, the project could meet nearly 35 percent of the country's projected demand for ammonium nitrate by 2030. Ammonium nitrate is a key industrial chemical widely used in mining, infrastructure development, and other sectors.
Once operational, the plant is expected to reduce India's import dependence by around 0.66 million tonnes of ammonium nitrate annually. This could translate into foreign-exchange savings of more than USD 360 million each year.
Industry estimates suggest that over the lifetime of the project, cumulative savings from import substitution could exceed USD 9 billion, strengthening India's efforts to improve self-reliance in critical industrial inputs.
The project is also expected to support the government's broader objective of promoting coal gasification technology, which converts coal into synthesis gas that can be used to produce chemicals, fertilizers, fuels, and other value-added products. In addition to reducing imports, the initiative is anticipated to generate employment, stimulate industrial activity, and enhance the value derived from India's domestic coal resources.