Technology

L&T wins major Odisha coal-to-ammonia order in push for India’s energy security

The contract covers the development of a Nitric Acid and Ammonium Nitrate plant on a Lump Sum Turnkey basis under LSTK Package-4, with full single-point responsibility

  • By ICN Bureau | May 07, 2026
Larsen & Toubro (L&T) has secured a large engineering, procurement and construction order from Bharat Coal Gasification and Chemicals Ltd (BCGCL) to build a Coal-to-Ammonia-Nitrate project in Odisha.
 
This marks another major step in India’s coal gasification push.
 
The contract, awarded to L&T Energy Hydrocarbon Onshore, covers the development of a Nitric Acid and Ammonium Nitrate plant on a Lump Sum Turnkey basis under LSTK Package-4, with full single-point responsibility. 
 
Once completed, the facility will convert coal into ammonium nitrate at a capacity of 2,000 tonnes per day, aimed at meeting rising demand from mining, infrastructure and industrial sectors.
 
BCGCL has entrusted L&T with end-to-end execution, including process licensing, basic and detailed engineering, procurement, construction, commissioning and performance testing—along with final handover of the plant.
 
“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”. said Subramanian Sarma, Deputy Managing Director & President - L&T.
 
Echoing the execution focus, ES Sathyanarayanan, Senior Vice President & Head of L&T Onshore and Member of L&T’s Executive Committee, said: “Winning the LSTK Package-4 order reflects BCGCL’s trust in our execution capabilities. Our robust engineering and unwavering focus on EHS and quality will ensure reliable and efficient delivery of the Nitric Acid and Ammonium Nitrate facilities”.
 
The project aligns with India’s broader Aatmanirbhar Bharat push, which targets 100 million tonnes of coal gasification capacity by 2030. The initiative aims to transform high-ash domestic coal into higher-value products such as ammonia, methanol, Synthetic Natural Gas, fertilisers and ammonium nitrate—reducing import dependence and strengthening industrial self-reliance.

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