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Larsen & Toubro has secured a large engineering, procurement and construction (EPC) order valued between INR 2,500 crore and INR 5,000 crore for a coal-to-ammonium nitrate project in Odisha. The contract has been awarded by Bharat Coal Gasification and Chemicals Ltd, a joint venture of Coal India Limited and Bharat Heavy Electricals Limited. The facility is designed to produce 2,000 tonnes of ammonium nitrate per day and is expected to support domestic industrial demand while reducing import dependence. The development reflects continued investment in downstream coal utilisation and chemical manufacturing infrastructure.
Larsen & Toubro has secured an engineering, procurement and construction (EPC) contract valued between INR 2,500 crore and INR 5,000 crore for the development of a coal-to-ammonium nitrate project in Odisha, according to a company filing made in the past week. Advertisement
The order has been awarded by Bharat Coal Gasification and Chemicals Ltd, a joint venture between Coal India Limited and Bharat Heavy Electricals Limited. The project will be executed by L&T’s Energy Hydrocarbon Onshore division on a lump sum turnkey basis.
The scope of the contract includes the development of a nitric acid and ammonium nitrate plant, along with associated facilities. L&T’s responsibilities will cover basic design, detailed engineering, procurement, construction, project management, and final handover of the facility.
Once operational, the plant is expected to produce 2,000 tonnes of ammonium nitrate per day. The output will cater to demand from sectors such as mining, infrastructure, and industrial manufacturing, where ammonium nitrate is widely used as a key input.
The project is part of broader efforts to utilise domestic coal resources for value-added products through gasification and downstream chemical processing. By converting coal into ammonium nitrate, the facility is expected to reduce reliance on imports of industrial chemicals and support domestic manufacturing capabilities.
Officials indicated that the project would also contribute to conserving foreign exchange by lowering import requirements, while strengthening supply chains for industries dependent on explosives and fertiliser-related inputs.
The involvement of Coal India Limited and Bharat Heavy Electricals Limited through their joint venture reflects public sector participation in expanding coal-based chemical infrastructure. The initiative aligns with ongoing efforts to diversify coal usage beyond power generation.
The project will be developed in Odisha, a state with significant mineral resources and industrial activity. Large-scale industrial projects in the region have been supported by access to raw materials, logistics infrastructure, and policy support for manufacturing.
The contract falls within L&T’s classification of ‘large’ orders, typically ranging between INR 2,500 crore and INR 5,000 crore. Such projects form a key component of the company’s order book in the energy and hydrocarbons segment.
Industry observers noted that investments in coal gasification and downstream chemicals are gaining traction as part of efforts to enhance resource utilisation and reduce import dependence in critical sectors.
The execution timeline and commissioning schedule for the project are expected to be determined as part of detailed project planning and regulatory approvals.
The order reinforces L&T’s presence in industrial EPC projects, particularly in the energy and chemicals segment, where integrated facilities are being developed to support India’s industrial demand.
Source - PTI
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