L&T Secures Massive ₹5,000 Cr Coal-to-Ammonium Nitrate Project in Odisha for BCGCL

05 May 2026, 10:22 by Vinay Kakkad · KalingaTV

Larsen & Toubro (L&T) said its Energy Hydrocarbon Onshore business landed a large contract from Bharat Coal Gasification and Chemicals Limited (BCGCL) to build a major coal-to-ammonium nitrate plant. The order falls somewhere between ₹2,500 crore and ₹5,000 crore, making it a big step in India’s push to turn domestic coal into high-value chemicals.

BCGCL is a joint venture—Coal India Limited owns 51%, and Bharat Heavy Electricals Limited holds 49%. The plant will be built in Lakhanpur, in Odisha’s Jharsuguda district. It’s designed to produce 2,000 tonnes of ammonium nitrate every day. This chemical is a key ingredient for mining, infrastructure, and several industries, mainly serving as a high-nitrogen fertilizer and as a main part of commercial explosives.

BCGCL gave the contract to L&T on a Lump Sum Turnkey (LSTK) basis—specifically for “Package-4,” which covers the Nitric Acid and Ammonium Nitrate units. L&T will handle pretty much everything, from process licensing and basic design to detailed engineering, procurement, construction, and launch. The contract also includes performance guarantee tests and the final handover to BCGCL.

This project is central to the “Aatmanirbhar Bharat” initiative. It lines up with the national mission to hit 100 million tonnes of coal gasification capacity by 2030. By turning high-ash domestic coal into products like ammonium nitrate, methanol, and synthetic natural gas, the government wants to cut back on costly imports of natural gas and fertilizer and boost the country’s energy security and industrial independence.