News and Articles

• L&T has won an EPC order worth up to Rs 2,500 crore for a coal-to-ammonium nitrate project in Odisha.
• The project has been awarded by BCGCL, a joint venture of Coal India and BHEL.
• The plant will convert coal into syngas and then produce ammonia for nitric acid and ammonium nitrate units.
• The project supports India’s plan to reduce reliance on imported ammonia and related industrial chemicals.
• L&T will handle licensing, engineering, procurement, construction, commissioning, testing and handover.

Larsen & Toubro has secured an EPC contract worth up to Rs 2,500 crore for a coal-to-ammonium nitrate project in Odisha, marking a fresh push to build domestic capacity in chemicals used across fertilisers, mining and infrastructure.

The contract has been awarded by Bharat Coal Gasification and Chemicals Ltd, a joint venture of Coal India Ltd and Bharat Heavy Electricals Ltd. The project is aimed at producing ammonia from coal through gasification, with the output feeding units that will make nitric acid and ammonium nitrate.

L&T has placed the order in its “significant” category, which covers contracts valued between Rs 1,000 crore and Rs 2,500 crore. The work will be handled by the company’s energy hydrocarbon onshore business under a lump sum turnkey model.

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The company’s role will cover process licensing, basic and detailed engineering, procurement, construction and mechanical completion. It will also handle pre-commissioning, commissioning, sustained load runs, performance guarantee tests, project management and handover.

The Odisha plant is part of India’s wider effort to cut dependence on imported ammonia and related chemicals. Ammonium nitrate is widely used in fertilisers and industrial explosives, making steady domestic supply important for agriculture, mining and construction activity.

The project will use coal gasification to convert domestic coal into syngas, which will then be processed into ammonia. The model is intended to add value to India’s coal reserves beyond power generation and support local production of chemicals that are critical for several industries.

For Odisha, the project could bring fresh industrial activity linked to chemicals, engineering and plant operations. It may also support demand for skilled labour and create openings for related downstream units once production begins.

The contract also strengthens L&T’s position in large chemical and process plant projects, especially those involving gasification and ammonia production. If executed successfully, the Odisha facility could become a reference project for similar coal-based chemical plants in India.