L&T Wins Major Odisha Coal-to-Ammonium Nitrate Project Order

Larsen & Toubro (L&T) has secured a major order for a coal-to-ammonium nitrate project in Odisha, marking another significant step in India’s push towards coal gasification and chemical manufacturing. The project has been awarded by Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture between Coal India Limited and Bharat Heavy Electricals Limited (BHEL).

The project involves setting up a nitric acid plant and ammonium nitrate facility on a lump sum turnkey basis in Odisha. According to the company, the order falls under L&T’s “large” category, which typically ranges between ₹2,500 crore and ₹5,000 crore in value.

Once completed, the facility will produce around 2,000 tonnes of ammonium nitrate production per day by converting coal into chemical products. The plant is expected to support industries such as mining, infrastructure, and manufacturing, while also helping India reduce dependence on imported chemicals.

L&T’s scope of work includes engineering, procurement, construction, commissioning, performance testing, and handover of the project. The company said the order reflects its growing expertise in handling large and technology-driven industrial projects.

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Subramanian Sarma, Deputy Managing Director and President of L&T, said the project highlights the importance of indigenous energy infrastructure in supporting India’s long-term industrial and energy goals. He added that the order further strengthens the company’s position in the downstream chemicals sector.

The project also aligns with the Indian government’s broader coal gasification mission under the Aatmanirbhar Bharat initiative. India aims to achieve 100 million tonnes of coal gasification capacity by 2030, with a focus on producing value-added products such as methanol, ammonia, fertilisers, synthetic natural gas, and ammonium nitrate using domestic coal resources.

Industry experts believe projects like this could play a key role in boosting local manufacturing, reducing imports, and creating a stronger industrial supply chain in the coming years.