Larsen & Toubro (L&T) announced that its Energy Hydrocarbon Onshore division has secured a substantial contract from Bharat Coal Gasification and Chemicals Limited (BCGCL) to construct a major coal-to-ammonium nitrate facility. The contract value is estimated to be between ₹2,500 crore and ₹5,000 crore, representing a significant milestone in India’s initiative to convert domestic coal into high-value chemicals.
BCGCL is a joint venture, with Coal India Limited holding 51% and Bharat Heavy Electricals Limited owning 49%. The facility will be located in Lakhanpur, within the Jharsuguda district of Odisha, and is designed to produce 2,000 tonnes of ammonium nitrate daily. This chemical is essential for various industries, particularly as a high-nitrogen fertilizer and a key component in commercial explosives.
The contract awarded to L&T is on a Lump Sum Turnkey (LSTK) basis, specifically for “Package-4,” which encompasses the Nitric Acid and Ammonium Nitrate units. L&T will oversee all aspects of the project, including process licensing, basic design, detailed engineering, procurement, construction, and commissioning. The contract also includes performance guarantee tests and the final handover to BCGCL.
This project aligns with the “Aatmanirbhar Bharat” initiative and supports the national goal of achieving 100 million tonnes of coal gasification capacity by 2030. By converting high-ash domestic coal into products such as ammonium nitrate, methanol, and synthetic natural gas, the government aims to reduce expensive imports of natural gas and fertilizers, thereby enhancing the country’s energy security and industrial self-sufficiency.
