Coal Gasification Project: Eight Likely Bidders Attend BCGCL's First Pre-Bid Meeting

Eight potential bidders attended the first pre-bid meeting conducted by Bharat Coal Gasification and Chemicals Ltd. for its first coal gasification project.

Under the strategic direction of the Ministry of Coal, BCGCL had floated tenders for three Lump Sum Turnkey packages—LSTK-2 on May 30, and LSTK-3 and LSTK-4 on June 14. These tenders are aimed at finalising the Detailed Feasibility Report essential for the project's advancement, the government said in statement.

BCGCL is a joint venture of Coal India Ltd. and Bharat Heavy Electricals Ltd. where the former holds 51% stake. The company has been formed to pursue coal-to-chemicals operation.

The coal gasification project, set to be established in the Lakhanpur area of Mahanadi Coalfields Ltd. in Odisha, has reached key milestones with the recent floating of tenders. The project is expected to cost around Rs 11,782 crore, and the entire project cost, including the preparation of a detailed feasibility report, is estimated at Rs 1,350 crore.

The gasification plant will be based on locally developed coal gasification technology by BHEL, which utilised the high ash coal from Lakhanpur Area to produce 0.66 million metric tonne per annum technical grade ammonium nitrate. The project also includes a cooling tower, steam generation plant, and coal handling plant.