Page 134 - CW E-Magazine (11-6-2024)

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PROJECT UPDATE

Coal India, BHEL incorporate coal-to-chemicals jv;

tender fl oated for Odisha project

Coal India Ltd. (CIL) and Bharat
Heavy Electricals Ltd. (BHEL) have
incorporated a joint venture company,
Bharat Coal Gasifi cation & Chemi-
cals Ltd. (BCGCL) on May, 21, 2024,
marking the entry of these two PSUs
into the coal-to-chemical business.

CIL will hold a majority 51 percent
stake in the new entity, with BHEL
owing the rest. The jv will be based in
Jharsuguda district of Odisha.

CIL and BHEL had signed a joint
venture agreement (JVA) in February
this year for setting up India’s fi rst
commercial-scale ammonium nitrate
plant through surface coal gasifi cation been designated as Project Manage- purify the raw syngas produced from
(SCG) technology route. The plant, ment Consultant (PMC) for the project the coal gasifi er and make it suitable
which will be set up by this jv company and will prepare the Detailed Feasibi- for ammonia synthesis. The packaging
in Odisha, will not only be India’s fi rst lity Report (DFR). philosophy for the execution of the
commercial coal gasifi cation project, it project has been fi nalised as partial
will also be the fi rst to commercialise Tender fl oated LSTK (lump sum turnkey) mode
an indigenously-developed coal gasifi - In another related development, wherein four LSTK packages and 29
cation technology devised by BHEL. BCGCL, has fl oated a tender docu- other offsites & utilities packages that
ment for selection of LSTK-2 con- will be done on EPC mode have been
Clearance of NITI Aayog and the tractor for its coal-to-ammonium identifi ed. Out of four LSTK pack-
Department of Investment and Public nitrate project. ages, three packages namely LSTK-2,
Asset Management (DIPAM) has been LSTK-3 and LSTK-4 will be exe-
received for the formation of the jv The LSTK-2 tender deals with cuted through tendering route and
company. syngas purifi cation plant and am- remaining LSTK-1 will be done by
monia synthesis gas plant that will BHEL on nomination basis.
“Bharat Coal Gasifi cation & Chemi-
cals Ltd. has been incorporated...for
coal-to-chemicals business to produce Sumitomo Chemical India’s Q4
ammonia and nitric acid as intermedi-
ate products and ammonium nitrate as profi t up 52%
end product,” a stock market fi ling by
CIL said. Sumitomo Chemical India Ltd. Rs. 700.90-crore in the fourth quarter of
has reported a 52 percent increase the last fi scal from Rs. 668.05-crore in the
The project will utilise high-ash in its consolidated net profit to corresponding period of the preceding
coal from Lakhanpur Area to produce Rs. 109.89-crore in the fourth quarter year, according to a regulatory fi ling.
0.66-mmtpa of technical grade ammo- ended March 31, 2024. Its net profi t During 2023-24 fi scal, the company’s
nium nitrate. The entire project cost is stood at Rs. 72.12-crore in the same net profi t fell to Rs. 369.74-crore from
around Rs. 11,782-crores. PDIL has year-ago period. Total income rose to Rs. 502.20-crore in the preceding year.

134 Chemical Weekly June 11, 2024

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