Bharat Heavy Electricals Limited (BHEL) has received a major order after being awarded a Letter of Acceptance (LoA) by Bharat Coal Gasification and Chemicals Limited (BCGCL) for a key package of its coal-to-chemicals project in Odisha. The LoA was issued on 10 February 2026 (IST) and marks a significant milestone for BHEL in the coal gasification and fertiliser value chain.
BCGCL is a joint venture company promoted by Coal India Limited (51%) and BHEL (49%). The order relates to the Syngas Purification Plant (LSTK-2 Package) for BCGCL’s Coal to 2,000 TPD Ammonium Nitrate Project located at Lakhanpur in Jharsuguda district, Odisha.
Under the contract, BHEL will undertake design, engineering, supply of equipment, civil works, erection, commissioning, and operation & maintenance (O&M) services on a Lump Sum Turnkey (LSTK) basis. The project has been awarded through a domestic nomination-based tender, reinforcing BHEL’s role as both promoter and executing agency for the project.
The total estimated value of the order is approximately ₹2,800 crore, excluding customs duty and GST. As per the agreed timeline, preliminary acceptance, including commissioning and performance guarantee tests, is scheduled within 42 months from the date of LoA, followed by O&M services for a further 60 months from the date of preliminary acceptance.
Given BHEL’s equity participation in BCGCL, the contract qualifies as a related party transaction. The company has confirmed that the order has been executed on an arm’s length basis, in line with applicable regulatory and governance norms.