Odisha Gets Major Chemical Project as L&T Secures Rs 5,000 Cr Deal

In a major boost to India’s industrial sector, Larsen & Toubro has secured a large contract for a coal-to-ammonium nitrate facility in Odisha.

 The Chemical Project marks a significant step in strengthening domestic manufacturing, with the deal size estimated between Rs 2,500 crore and Rs 5,000 crore.

The order has been awarded by Bharat Coal Gasification and Chemicals Limited, a joint venture between Coal India Limited and Bharat Heavy Electricals Limited. L&T will execute the project on a turnkey basis, covering design, engineering, procurement, construction, and commissioning.

The plant will convert coal into ammonium nitrate, a key chemical used in mining and infrastructure sectors. With a planned capacity of 2,000 tonnes per day, the facility is expected to reduce India’s dependence on imports while strengthening domestic supply chains. The Chemical Project development also highlights the country’s focus on turning raw materials into higher-value industrial products.

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Subramanian Sarma, Deputy Managing Director and President at L&T, said, "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."

This project aligns with India’s broader push toward coal gasification and self-reliance in critical chemicals. By using domestic coal resources more efficiently, it supports both industrial expansion and long-term resource optimization.

E S Sathyanarayanan, Senior Vice-President and Head of L&T Onshore, said, "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 is expected to play a vital role in supporting industries that rely heavily on ammonium nitrate, while also boosting infrastructure growth. With this win, Larsen & Toubro continues to strengthen its presence in large-scale engineering and energy projects, reinforcing its role in India’s evolving industrial landscape.