Bharat Coal Gasification & Chemicals Limited (BCGCL), a joint venture between Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL), has issued a tender for the selection of an LSTK-2 contractor for its ‘Coal to Ammonium Nitrate’ project in Odisha. This significant development marks the latest step in India’s efforts to establish its first commercial-scale coal-to-chemical plant using surface coal gasification (SCG) technology.
Tender Details:
- Tender Number: PNMM/PC288/E/001
- Tender Title: Bharat Coal Gasification and Chemicals Limited, BCGCL
- Available On: CPP portal
- Pre-Bid Date: 28.06.2024
- Query Submission Deadline: 21.06.2024
Project Overview
CIL and BHEL’s agreement aims to set up a state-of-the-art plant that will utilize locally developed coal gasification technology by BHEL. This technology will convert high ash coal from the Lakhanpur area into 0.66 million metric tons per annum (MMTPA) of technical grade ammonium nitrate. The total project cost, as outlined in the Preliminary Feasibility Report (PFR), is estimated at ₹11,782 crores. The Detailed Feasibility Report (DFR) preparation is overseen by M/s PDIL, the Project Management Consultant (PMC).
BCGCL Structure
- Incorporated On: May 21, 2024
- CIN: U23935OD2024GOI045884
- Equity Distribution: 51% CIL, 49% BHEL
Project Execution and Packaging Philosophy
The project will be executed in a partial Lump Sum Turnkey (LSTK) mode, comprising four LSTK packages and 29 other offsite & utility packages handled on an EPC basis. The LSTK packages are as follows:
LSTK-1 Package:
- Coal Gasification, Air Separation Unit (ASU), Ash Handling Plan (AHP), Steam Generation Plan (SGP), Coal Handling Plant (CHP), Cooling Towers for Coal Gasification.
- Execution: By BHEL on a nomination basis.
LSTK-2 Package:
- Raw Gas Purification including CO Shift Unit, Rectisol Unit, Sulphur Recovery Unit, and Liquid Nitrogen Wash Unit.
- Tender floated.
LSTK-3 Package:
- Ammonia Synthesis Unit.
- Tender prepared and under approval.
LSTK-4 Package:
- Nitric Acid, Ammonium Nitrate Plant with Prilling Tower, Cooling Tower for Ammonia Unit, Nitric Acid Unit, Ammonium Nitrate Unit.
- Tender prepared and under approval.
Offsites & Utilities:
- Scope: Selection of EPC contractors for 29 identified packages, contributing to the finalization of the DFR.
Project Significance
he establishment of this plant represents a milestone in India’s journey towards self-reliance and indigenous technology development. Utilizing high ash coal through BHEL’s technology, the plant will produce ammonium nitrate for CIL’s explosive activities in coal mining. The project also aims to benefit from a ₹1350 crore financial incentive under the Ministry of Coal’s initiative to promote coal/lignite gasification projects.
With tenders for LSTK-3 and LSTK-4 prepared and pending approval, BCGCL is set to proceed swiftly with these crucial components, further advancing India’s coal-to-chemical sector. The project is poised to become the first commercial coal gasification plant showcasing BHEL’s indigenous technology, highlighting a significant leap towards sustainable industrial innovation.
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