L&T Secures Up to Rs 50 bn Order For Coal To Ammonium Nitrate Plant

08 May 2026 CW Team

Larsen & Toubro (L&T) Energy Hydrocarbon Onshore business has won a large order from Bharat Coal Gasification and Chemicals (BCGCL) to build a coal-to-ammonium nitrate plant in Odisha. The order value is reported between Rs 25 bn and Rs 50 bn and will be executed on a lump sum turnkey basis under Package four with single point responsibility.

The contract covers setting up nitric acid and ammonium nitrate facilities and includes process licensing, basic and detailed engineering, procurement and construction. L&T will also manage mechanical completion, pre-commissioning, commissioning and performance test runs before handing over the plant.

The plant is planned to convert coal into ammonium nitrate with an intended capacity of 2,000 tonnes (t) per day, supporting demand from India’s mining, infrastructure and industrial sectors. Output is expected to supply explosives and fertiliser feedstocks for domestic users and reduce dependence on imports.

BCGCL is a joint venture between Coal India and Bharat Heavy Electricals, and the project is described as aligning with the Aatmanirbhar Bharat initiative. The company filing noted India’s target of achieving 100 million tonnes (mn t) of coal gasification capacity by 2030 as a driver for indigenous value addition.

L&T said the award strengthens its position in gasification and downstream chemicals engineering, procurement and construction and demonstrates capability to deliver complex, technology intensive projects at scale. L&T Energy Hydrocarbon Onshore is among India’s largest EPC businesses and has executed refinery expansions, petrochemical complexes, gas processing plants and fertiliser units across regions.

The project will support domestic supply chains and boost local manufacturing of related equipment, reinforcing efforts to reduce import dependence. It will also strengthen the domestic market for coal gasification technologies and create work across engineering, procurement and construction segments.

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