Larsen & Toubro on Tuesday secured a large order from Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture of Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL), to build a coal-to-ammonium nitrate plant in Odisha with a planned production capacity of 2,000 tonnes per day.
Shares of L&T were trading at ₹4,062.60, down 0.92% in early trade.
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The project will convert coal into ammonium nitrate, a key industrial chemical widely used in mining and infrastructure sectors.
L&T will build the nitric acid and ammonium nitrate plant and manage the entire project — from design and equipment sourcing to construction and commissioning — effectively taking responsibility for delivering a fully operational facility.
Once ready, the plant will convert coal into ammonium nitrate, a material widely used in mining and infrastructure projects. The scale of output is expected to support rising demand from these sectors.
The project fits into India’s larger plan to use its coal reserves more efficiently.
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“Under the Aatmanirbhar 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 and strengthening India’s industrial self-reliance,” the filing said.
Commenting on the order, Subramanian Sarma of L&T said: “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”.
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Also Read: Coal India's production in April drops amid rising power demand
The project will convert coal into ammonium nitrate, a key industrial chemical widely used in mining and infrastructure sectors.
L&T will build the nitric acid and ammonium nitrate plant and manage the entire project — from design and equipment sourcing to construction and commissioning — effectively taking responsibility for delivering a fully operational facility.
Once ready, the plant will convert coal into ammonium nitrate, a material widely used in mining and infrastructure projects. The scale of output is expected to support rising demand from these sectors.
The project fits into India’s larger plan to use its coal reserves more efficiently.
Also Read: Vedanta Aluminium told to pay Rs 233 crore for unauthorised water extraction in Odisha
“Under the Aatmanirbhar 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 and strengthening India’s industrial self-reliance,” the filing said.
Commenting on the order, Subramanian Sarma of L&T said: “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”.
