L&T bags Rs 2,500-crore coal-to-ammonium nitrate plant order in Odisha

Larsen & Toubro (L&T) Ltd has officially announced the stock exchange through a regulatory filing that its energy hydrocarbon onshore business has secured an engineering, procurement and construction (EPC) order from Bharat Coal Gasification and Chemicals Ltd (BCGCL) for a coal-to-ammonium nitrate fertiliser project in Odisha.

BCGCL is a joint venture between Coal India Ltd and Bharat Heavy Electricals Ltd (BHEL).

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L&T has classified the order from BCGCL as ‘significant’, which refers to projects valued between Rs 1,000 crore and Rs 2,500 crore.

According to L&T’s regulatory filing, the Lump Sum Turnkey (LSTK) Package-4 order strengthens its position in clean syngas-based ammonia synthesis, which is a key component in the coal-to-chemicals value chain.

Commenting on bagging the BCGCL order, L&T’s Deputy Managing Director and President Subramanian Sarma said, “The development of indigenous ammonia capacity through coal-based routes strengthens supply resilience and supports downstream industrial ecosystems.”

The scope of the order includes process licence, basic design, detailed engineering, procurement and construction, along with mechanical completion, pre-commissioning, commissioning, sustained load and performance guarantee test runs, project management, and the final handover of the ammonia synthesis unit as well as associated facilities on a lump-sum turnkey basis with single-point responsibility.

The ammonia plant will support downstream production of nitric acid and ammonium nitrate while improving operational efficiency, process reliability and plant integration.

The order will be executed on a Lump Sum Turnkey basis (LSTK Package-4) with single-point responsibility. Once operational, the facility will enable the conversion of coal into ammonium nitrate with a planned production capacity of 2,000 tonnes per day (tpa), supporting the growing requirements of India’s mining, infrastructure and industrial sectors.

This order underscores BCGCL’s confidence in L&T’s proven capabilities, particularly in executing complex, technology-intensive projects under challenging conditions, while maintaining the highest standards of safety, quality and execution excellence.

Under the Atma Nirbhar Bharat initiative, India has set an ambitious target of achieving 100 million tonnes of coal gasification capacity by 2030. This mission aims to convert high-ash domestic coal into value-added products such as ammonium nitrate, methanol, ammonia, synthetic natural gas and fertilisers, thereby reducing import dependence on petroleum and strengthening India’s industrial self-reliance.

“This large order strengthens L&T’s presence in the gasification and downstream chemicals EPC space. Indigenous gasification infrastructure will play a pivotal role in India’s energy transition, and this order reinforces our ability to deliver complex, technology-intensive projects at scale,” L&T’s Deputy Managing Director and President Subramanian Sarma said.

Senior Vice President & Head of L&T Onshore and Member of L&T’s Executive Committee E S Sathyanarayanan said, “Winning the LSTK Package-4 order reflects BCGCL’s trust in our execution capabilities. Our robust engineering and unwavering focus on EHS and quality will ensure reliable and efficient delivery of the nitric acid and ammonium nitrate facilities.”