New Delhi: Larsen & Toubro’s (L&T) Energy Hydrocarbon Onshore vertical has secured a large order from Bharat Coal Gasification and Chemicals Ltd (BCGCL ) for a coal-to-ammonium nitrate project in Odisha, marking a significant addition to its Engineering, Procurement, and Construction (EPC) portfolio.
The project, awarded under a Lump Sum Turnkey (LSTK) framework with single-point responsibility, involves setting up a nitric acid and ammonium nitrate plant, L&T said in a press release.
Once commissioned, the facility is expected to convert coal into ammonium nitrate with a production capacity of 2,000 tonnes per day, catering to demand from India’s mining, infrastructure, and industrial sectors.
BCGCL is a joint venture between Coal India Limited and Bharat Heavy Electricals Limited, formed to advance coal gasification initiatives in the country.
The scope of the contract spans the entire project lifecycle, including process licensing, basic and detailed engineering, procurement, construction, mechanical completion, pre-commissioning, and commissioning. It also covers performance guarantee test runs, overall project management, and final handover of the facility.
The order reflects BCGCL’s confidence in L&T’s ability to execute complex and technology-intensive projects while maintaining high standards of safety, quality, and operational efficiency.
The development aligns with India’s broader push under the Aatmanirbhar Bharat initiative to achieve 100 million tonnes of coal gasification capacity by 2030. The programme aims to utilise domestic high-ash coal to produce value-added products such as ammonium nitrate, methanol, ammonia, synthetic natural gas, and fertilisers, thereby reducing import dependence.
Subramanian Sarma, Deputy Managing Director & President – L&T, indicated that the order strengthens L&T’s position in the gasification and downstream chemicals EPC segment.
He added that indigenous gasification infrastructure is expected to play a key role in the country’s energy transition while reinforcing the company’s capability to deliver complex projects at scale.
E. S. Sathyanarayanan, Senior Vice President & Head of L&T Onshore and Member of L&T’s Executive Committee, stated that securing the LSTK Package-4 contract demonstrates client confidence in L&T’s execution capabilities.
Sathyanarayanan added that a strong engineering approach, along with a focus on environment, health, and safety standards and quality, would support efficient delivery of the facilities.
