A 30 cm (12 inch)I.D., Pressurised Fluidized Bed Combustor Research Facility capable of burning low grade coals up to pressures of 15 atmospheres temperature of 1000°C, the first of its kind in an educational institution in India, has been established in IIT, Madras. The heart of the facility is a castable refractory and insulation lined combustor vessel made of five removable sections and provided with sixty nine ports for research instrumentation, fuel feeding, ash disposal and visualization. The paper describes the various systems of the facility and presents the test program for the study of low grade coals envisioned in the future. The study of bubble characteristics and the performance of vertical bayonet type of heat exchangers are two significant areas of research proposed. The commissioning activities and results of initial tests are also presented.