Bharat Coal Gasification & Chemicals Limited (BCGCL), a joint venture company of Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), has floated a tender document for selection of LSTK-2 contractor for ‘Coal to Ammonium Nitrate’ Project at Odisha on Thursday.
The joint venture company, Bharat Coal Gasification and Chemicals Limited (BCGCL), has been set up by Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL). The project is expected to cost around ₹11782 crore, and the entire project cost, including the preparation of a detailed feasibility report (DFR), is estimated at ₹1350 crore. The tender document for the project has been floated on the portal and the interested bidders can submit their queries on or before June 21, 2024.
The pre-bid process is scheduled to begin on June 28, 2024. The project consists of four packages. LTK-1 will be executed by BHEL on a nomination basis. The remaining three packages, LTK-2, LTK-3, and LTK-4, will be executed through tendering. The packages LTK-2 and LTK-3 will include the purification of raw gas, the production of carbon monoxide, the synthesis of ammonia, and the storage of liquid nitrogen. The package LTK-4 will include the production of nitric acid and ammonium nitrate.
The project also includes a cooling tower, steam generation plant, and coal handling plant. The project is expected to create employment opportunities and promote economic development in the country.
The initiative also aligns with the government’s goal of promoting clean sources of energy and reducing India’s carbon footprint. The project is expected to be the first to qualify for the benefit of Rs 1350 crore under Category-1 of the financial incentive scheme proposed by the government for coal/lignite gasification projects of government PSUs and the private sector.