Two Maharatna companies join hands for ambitious project, Fox will be on the stock market today

Public sector Maharatna companies Coal India Ltd and Bharat Heavy Electricals Ltd signed a joint venture agreement after the market closed on Wednesday. Through a joint venture, the company plans to set up an ammonium nitrate plant through coal gasification technology.

The plant to be set up by Mahanadi Coalfields Limited in Odisha's Lakhanpur area will initially produce 2,000 tonnes of ammonium nitrate per day. Annual production is estimated at 6.60 lakh tonnes which will require 1.3 million tonnes of coal. Coal India Limited ie CIL will supply the coal.

"The synergy and partnership of the two corporate giants is a major step towards the National Coal Gasification Mission which facilitates utilization of the chemical properties of coal," the Coal Ministry said.

Where is ammonium nitrate used?

Ammonium nitrate is a key ingredient in the production of bulk explosives that CIL uses extensively in its OC mining operations and is a major source of coal production for the company. The upcoming plant will help to secure raw material, reduce dependence on ammonium nitrate imports and promote Atmanirbhar Bharat Abhiyan.

Stock will be in focus

Talking about BHEL, this Maharatna company has given more than 200 percent return in one year. The company's share is currently Rs. 223 is being traded. At the same time, Coal India has also returned more than 98 percent in the last one year. This share is currently trading at Rs 434.

Coal Secretary Amrit Lal Meena said the project will be a role model with the commitment of CIL and BHEL. He said that gasification is a major priority area for the Coal Ministry. There will be enough coal in the next two-three years.

CIL Business Development Director Debashish Nanda and BHEL Engineering Research and Development Director Jay Prakash Srivastava signed the joint venture agreement on behalf of the respective promoter companies. After meeting the needs of the power sector, CIL will in future use alternative coal for environment-friendly ventures like coal gasification. Projects and Development India Limited has been entrusted with the task of preparing a detailed feasibility report for the plant.