Larsen & Toubro’s Energy Hydrocarbon Onshore business has secured a significant EPC order from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture of Coal India Limited and Bharat Heavy Electricals Limited, for a coal-to-ammonium nitrate project located in Odisha. Under L&T’s order classification system, a “significant” order corresponds to a contract value in the range of ₹1,000 crore to ₹2,500 crore.
The order, designated as Lump Sum Turnkey Package-3, involves the engineering, procurement and construction of an Ammonia Synthesis Unit, which forms a critical intermediate step in the broader coal-to-chemicals value chain. The ammonia produced will feed into downstream manufacturing of nitric acid and ammonium nitrate, key industrial and agricultural chemicals.
What is the scope of L&T’s work on the BCGCL project?
The scope of work under the LSTK contract is comprehensive, covering process licensing, basic design, detailed engineering, procurement and construction. It also includes mechanical completion, pre-commissioning, commissioning, sustained load testing, performance guarantee test runs, and final handover of the ammonia synthesis unit and associated facilities, with L&T carrying single-point responsibility for delivery.
L&T Onshore will deliver an ammonia synthesis unit designed for high on-stream availability, sustained operational reliability, and compliance with stringent safety standards. The business brings domain expertise from prior execution of fertiliser plants, gas processing facilities, and petrochemical complexes across multiple geographies.
What did L&T’s leadership say about the order win?
Subramanian Sarma, Deputy Managing Director and President at L&T, said gasification-based downstream chemical infrastructure is central to India’s self-reliance agenda, and that the development of indigenous ammonia capacity through coal-based routes strengthens supply resilience and supports downstream industrial ecosystems.
E S Sathyanarayanan, Senior Vice President and Head of L&T Onshore, noted that the ammonia plant is a critical component of the coal-to-chemicals value chain, and that the company’s proven capabilities in executing such technology-intensive assets ensure consistent product quality and long-term performance.
What is BCGCL and why does this order matter?
BCGCL is a joint venture between two central public sector enterprises — Coal India Limited, the world’s largest coal producer, and BHEL, India’s premier heavy engineering company. The coal-to-chemicals initiative is part of a broader national push to monetise India’s coal reserves through value-added chemical conversion rather than direct combustion, reducing import dependence on fertilisers and industrial chemicals. This order follows a recent large order win for L&T Energy Hydrocarbon Onshore, marking continued momentum in the segment.
L&T is a USD 32 billion Indian multinational engaged in EPC projects, hi-tech manufacturing, and services across diverse sectors and geographies.
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