L&T wins ₹2,500-5,000 cr coal gasification EPC (2026)

Order win and why it matters

Larsen & Toubro (L&T) said its Energy Hydrocarbon Onshore business has secured a “large” order from Bharat Coal Gasification and Chemicals Ltd (BCGCL) for a Coal-to-Ammonia-Nitrate project in Odisha. BCGCL is a joint venture of Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL). As per L&T’s internal classification, the order value is in the range of ₹2,500 crore to ₹5,000 crore. The project centres on building a Nitric Acid and Ammonium Nitrate Plant under an engineering, procurement and construction (EPC) model. L&T said the award strengthens its position in gasification and downstream chemicals execution.

Who the client is: BCGCL and the project location

BCGCL is positioned as the operating vehicle for coal gasification and downstream chemical projects, backed by CIL and BHEL. The project is located in Odisha, a key industrial and mining state, and is designed to support demand from mining, infrastructure and industrial users. The company described the order as part of a broader push to build domestic coal-to-chemicals capacity. L&T’s role is to deliver a fully operational nitric acid and ammonium nitrate facility. The award reflects BCGCL’s decision to place a single-point responsibility package with one contractor.

Execution model: Lump Sum Turnkey with single-point responsibility

L&T said the project will be executed on a Lump Sum Turnkey basis under LSTK Package-4. Under this structure, the contractor takes end-to-end responsibility for delivery, covering design through commissioning and performance runs. The scope includes process licensing, basic design and detailed engineering. It also includes procurement and construction activities through mechanical completion. L&T will also handle pre-commissioning, commissioning, sustained load and performance guarantee test runs. The company said overall project management and final handover of the plant and its facilities are part of the package.

Capacity and end-use: 2,000 tonnes per day of ammonium nitrate

Once operational, the facility is planned to produce 2,000 tonnes per day of ammonium nitrate by converting coal into the final product. Ammonium nitrate is widely used in mining and infrastructure-linked applications, and the company cited demand from mining, infrastructure and industrial sectors. The planned output level is intended to support growing consumption in these areas. The project also ties into the stated objective of using domestic coal for value-added production. L&T’s filing positioned the facility as part of a broader industrial chemicals build-out.

What L&T will deliver: from licensing to final handover

The scope described by L&T is comprehensive and covers the full project lifecycle. It includes process licensing and both basic and detailed engineering, indicating that the contractor will drive technology integration into the plant design. It also includes procurement, construction and all activities leading to mechanical completion. The package extends into commissioning phases, including sustained load runs and performance guarantee tests. L&T also listed overall project management and the final handover of the plant and facilities. The company said the order highlights its ability to execute complex, technology-intensive projects under challenging conditions, while maintaining safety, quality and execution standards.

National context: Aatmanirbhar Bharat and the 2030 target

L&T linked the project to the Government of India’s Aatmanirbhar Bharat initiative. Under this mission, India has set a target of achieving 100 million tonnes of coal gasification capacity by 2030. The aim is to convert high-ash domestic coal into value-added products including ammonium nitrate, methanol, ammonia, Synthetic Natural Gas and fertilisers. The stated policy objective is to reduce import dependence and strengthen domestic industrial capabilities. L&T framed indigenous gasification infrastructure as an enabling layer for the country’s energy transition.

What the leadership said

Subramanian Sarma, Deputy Managing Director and President at L&T, said the order “strengthens L&T’s presence in the gasification and downstream chemicals EPC space.” He added that indigenous gasification infrastructure will play a pivotal role in India’s energy transition, and that the contract reinforces L&T’s ability to deliver complex, technology-intensive projects at scale. E S Sathyanarayanan, Senior Vice President and Head of L&T Onshore, and a member of L&T’s executive committee, said winning LSTK Package-4 reflects BCGCL’s trust in L&T’s execution capabilities. He also cited a focus on engineering, EHS and quality for reliable and efficient delivery of the nitric acid and ammonium nitrate facilities.

Key facts at a glance

Market impact and what to track next

For investors, the most concrete disclosure is the order-size band, with L&T classifying it as “large” at ₹2,500-₹5,000 crore, and the LSTK structure that places delivery responsibility with one EPC contractor. Operationally, the project adds to L&T’s exposure to gasification-led downstream chemicals, an area linked to India’s 2030 coal gasification ambition. The plant’s planned 2,000 tonnes per day output connects the project to mining and infrastructure demand, sectors that consume ammonium nitrate at scale. The next milestones to track, based on the stated scope, are engineering progression, procurement and construction execution, followed by commissioning and performance guarantee test runs leading to final handover.

About L&T and its onshore hydrocarbon business

L&T Energy Hydrocarbon Onshore is described as one of India’s largest EPC businesses, providing Lump Sum Turnkey solutions across upstream, midstream and downstream hydrocarbon segments. L&T also described itself as a USD 30 billion Indian multinational engaged in EPC projects, hi-tech manufacturing and services, operating across multiple geographies.

Conclusion

L&T’s Odisha order from BCGCL places it at the centre of a coal-to-chemicals project that is aligned with India’s 100 million tonnes coal gasification target for 2030. The company will execute the Nitric Acid and Ammonium Nitrate Plant on an LSTK basis, including commissioning and performance testing up to handover. With an estimated value of ₹2,500 crore to ₹5,000 crore and a planned 2,000 tonnes per day capacity, the contract is a sizeable addition to L&T’s gasification and downstream chemicals EPC pipeline. आगे के चरणों में, परियोजना की प्रगति का संकेत इंजीनियरिंग, खरीद, निर्माण, कमीशनिंग और परफॉर्मेंस गारंटी टेस्ट रन के औपचारिक अपडेट से मिलेगा।