New Delhi, May 31 (IANS): Bharat Coal Gasification & Chemicals Limited (BCGCL), a joint venture company of Coal India Ltd and BHEL has floated a tender for the selection of an LSTK-2 (lump sum turnkey) to start work on a portion of its Coal to Ammonium Nitrate project in Odisha which is coming up with an investment of Rs 1,1782 crores, according to a statement issued by the Ministry of Coal on Friday.

The project involves the setting up of a Syngas Purification Plant and ammonia Synthesis gas plant that will purify the raw syngas produced from the coal gasifier and make it suitable for ammonia synthesis.

CIL and BHEL have entered into an agreement for setting up India’s first commercial-scale coal to ammonium nitrate plant through surface coal gasification (SCG) technology route.

As per the agreement, 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 tonnes per annum (MMTPA) of technical grade ammonium nitrate.

The project involves four LSTK packages of which LSTK-2, LSTK-3 and LSTK-4 will be executed through the tendering route while the remaining LSTK-1 will be done by BHEL on nomination basis.

* 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.

* LSTK-2 Package: Raw Gas Purification including CO Shift Unit, Rectisol Unit, Sulphur Recovery Unit and Liquid Nitrogen wash Unit.

* LSTK-3 Package: Ammonia Synthesis Unit. Selection of EPC Contractor through tendering.

* LSTK-4 Package: Nitric Acid, Ammonium Nitrate Plant along with Prilling Tower along with Cooling Tower for Ammonia Unit, Nitric Acid Unit, Ammonium Nitrate Unit.

* Offsites & Utilities: Selection of EPC Contractor through tendering wherein 29 packages have been identified whose estimated value will be taken for finalisation of DFR.