L&T, UAE consortium targets Rs 44 billion NLC project
POWER & RENEWABLE ENERGY

L&T, UAE consortium targets Rs 44 billion NLC project

According to NLC India's CMD, Prasanna Kumar Motupalli, industrial conglomerate Larsen & Toubro and the UAE's energy service firm Petrofac have expressed interest in the development of NLC India's lignite-to-methanol plant in Neyveli, Tamil Nadu, worth Rs 44 billion. Motupalli stated that four companies were interested in the project and were currently in the process of submitting their bids. He further mentioned that the public sector company expected to finalise and award the project by the end of the following month.

Last year in October, Engineers India (EIL), the project management consultant for the proposed development, initiated a global tender for the project. The plant is anticipated to have an annual production capacity of approximately 400,000 tonne. Motupalli affirmed that NLC currently held the leading position in lignite-to-methanol or coal-to-methanol projects. He expressed their active pursuit of awarding the project, noting that the tendering process had already taken place, technical tie-ups were established, and preparations had begun at the Neyveli site. He expected the project to be awarded by the end of July, after which activities would commence promptly.

Motupalli added that four parties had already shown interest in the project and were actively progressing with their quotations. Petrofac from the UAE and L&T were among the interested parties, along with two others. The project would be executed through an engineering, procurement, and construction (EPC) contract, where NLC would provide the technology while the selected party would supply and install the system. The commissioning of the project was scheduled for 2027. L&T had been involved in gasification projects since 2004, having successfully completed 11 projects in the field. Petrofac, on the other hand, recently partnered with OCI Global, a global player in ammonia, fertilizers, and methanol, to deliver gasification-based green methanol projects.

NLC's lignite-to-methanol project, which is part of its diversification plan, aligns with the government's coal gasification strategy to meet ambitious net-zero targets. The company, previously known as Neyveli Lignite Corporation of India, has primarily focused on lignite mining and establishing lignite-based power plants. Recently, it established a wholly-owned subsidiary called NLC India Renewables to oversee its renewable energy ventures. The government introduced the National Coal Gasification Plan in November 2021, setting a target to gasify 100 million tonnes of coal by 2030. However, the plan is still gaining momentum, and the government is considering additional incentives for companies engaging in coal gasification, including GST reimbursement for coal procurement.

Also read:
Amazon to Invest $15 Billion in India by 2030
L&T, DRDO ink deal for Scorpene submarines' AIP modules


According to NLC India's CMD, Prasanna Kumar Motupalli, industrial conglomerate Larsen & Toubro and the UAE's energy service firm Petrofac have expressed interest in the development of NLC India's lignite-to-methanol plant in Neyveli, Tamil Nadu, worth Rs 44 billion. Motupalli stated that four companies were interested in the project and were currently in the process of submitting their bids. He further mentioned that the public sector company expected to finalise and award the project by the end of the following month. Last year in October, Engineers India (EIL), the project management consultant for the proposed development, initiated a global tender for the project. The plant is anticipated to have an annual production capacity of approximately 400,000 tonne. Motupalli affirmed that NLC currently held the leading position in lignite-to-methanol or coal-to-methanol projects. He expressed their active pursuit of awarding the project, noting that the tendering process had already taken place, technical tie-ups were established, and preparations had begun at the Neyveli site. He expected the project to be awarded by the end of July, after which activities would commence promptly. Motupalli added that four parties had already shown interest in the project and were actively progressing with their quotations. Petrofac from the UAE and L&T were among the interested parties, along with two others. The project would be executed through an engineering, procurement, and construction (EPC) contract, where NLC would provide the technology while the selected party would supply and install the system. The commissioning of the project was scheduled for 2027. L&T had been involved in gasification projects since 2004, having successfully completed 11 projects in the field. Petrofac, on the other hand, recently partnered with OCI Global, a global player in ammonia, fertilizers, and methanol, to deliver gasification-based green methanol projects. NLC's lignite-to-methanol project, which is part of its diversification plan, aligns with the government's coal gasification strategy to meet ambitious net-zero targets. The company, previously known as Neyveli Lignite Corporation of India, has primarily focused on lignite mining and establishing lignite-based power plants. Recently, it established a wholly-owned subsidiary called NLC India Renewables to oversee its renewable energy ventures. The government introduced the National Coal Gasification Plan in November 2021, setting a target to gasify 100 million tonnes of coal by 2030. However, the plan is still gaining momentum, and the government is considering additional incentives for companies engaging in coal gasification, including GST reimbursement for coal procurement. Also read: Amazon to Invest $15 Billion in India by 2030 L&T, DRDO ink deal for Scorpene submarines' AIP modules

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement