Bharat Coal Gasification and Chemicals Ltd (BCGCL) awards L&T EPC contract for Coal-to-Ammonium Nitrate project in Odisha – Indian PSU
Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture of Coal India Limited and Bharat Heavy Electricals Limited (BHEL), has awarded a significant Engineering, Procurement and Construction (EPC) contract to Larsen & Toubro (L&T) for its Coal-to-Ammonium Nitrate project in Odisha.
The order, classified as a “significant” contract, has been secured by L&T’s Energy Hydrocarbon Onshore vertical and pertains to Lump Sum Turnkey (LSTK) Package-3 of the project.
Strengthening coal-to-chemicals ecosystem
The contract reinforces L&T’s leadership in clean syngas-based ammonia synthesis—an essential component in the coal-to-chemicals value chain. The ammonia plant will play a crucial role in enabling downstream production of nitric acid and ammonium nitrate, ensuring operational efficiency, process reliability and seamless integration across the facility.
The project is aligned with India’s broader push towards self-reliance in critical industrial chemicals and fertiliser inputs, while leveraging domestic coal resources through gasification technologies.
Comprehensive EPC scope
L&T’s scope of work includes:
- Process licence and basic design
- Detailed engineering
- Procurement and construction
- Mechanical completion and pre-commissioning
- Commissioning and performance guarantee test runs
- Overall project management and final handover
The ammonia synthesis unit and associated facilities will be delivered on a single-point responsibility basis under the LSTK framework.
Focus on efficiency and safety
Leveraging its extensive expertise in fertilisers, gas processing and chemical EPC, L&T will design and deliver an ammonia synthesis unit capable of sustained operations, high on-stream factors and adherence to stringent safety standards in line with evolving global benchmarks.
Leadership perspective
Commenting on the development, Subramanian Sarma, Deputy Managing Director & President, L&T, said that gasification-based downstream chemical infrastructure is central to India’s self-reliance agenda.
“This significant order reinforces L&T’s role as a trusted EPC partner for technologically complex and nationally important projects. The development of indigenous ammonia capacity through coal-based routes strengthens supply resilience and supports downstream industrial ecosystems,” he stated.
Strategic significance
The project marks another step forward in India’s efforts to build a robust coal-to-chemicals ecosystem, reduce import dependence and enhance value addition from domestic coal resources. It also highlights growing collaboration between major public sector enterprises and private sector EPC leaders in executing large-scale, technology-intensive industrial projects.
