L&T Wins Coal-to-Ammonium Nitrate Project in Odisha

• L&T wins major coal gasification project in Odisha
• Plant to produce 2000 tonnes ammonium nitrate daily
• Project supports India’s self-reliance and energy security

Larsen & Toubro (L&T) has won a major engineering, procurement, and construction contract for a coal-to-ammonium nitrate project in Odisha, marking a significant development for India's energy and chemicals sector. The order which has been given to L&T by Bharat Coal Gasification and Chemicals Limited (BCGCL)a joint venture between Coal India and Bharat Heavy Electricalsis L&T's "large" project category type, which normally ranges from 2,500 crore to 5,000 crore in value.

L&T's Energy Hydrocarbon Onshore business will carry out the work of the project on a lump-sum turnkey basis, meaning they will be totally in charge of design engineering procurement construction commissioning, and final handover. The project scope includes installing a factory of nitric acid and ammonium nitrate that is a very important element of India's overall movement on coal gasification.

The plant when completely made, will be capable of producing ammonium nitrate by converting coal, and the production capacity is targeted at 2,000 tonnes per day. This production is anticipated to cater to the needs of sectors like mining, infrastructure, and industrial manufacturing, where ammonium nitrate is extensively used.

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The project is part of a larger national initiative to promote coal gasification and reduce dependence on imported feedstocks. India has been actively encouraging the use of domestic coal for value-added chemical production, aligning with its “Aatmanirbhar Bharat” vision. The Odisha-based plant is also notable for being among the first to deploy indigenously developed gasification technology, reinforcing domestic technological capabilities.

Strategically, the initiative represents a shift toward integrating energy and chemical production, enabling more efficient utilisation of coal resources. It is also expected to stimulate regional economic activity through infrastructure development and ancillary industries, particularly in coal-rich regions like Odisha.

Industry analysts view L&T’s contract win as a strong validation of its capabilities in executing complex, large-scale industrial projects. As India accelerates its coal gasification roadmap, such projects are likely to play a critical role in enhancing energy security, promoting industrial growth, and strengthening domestic manufacturing ecosystems.

Overall, the contract underscores the growing importance of integrated energy solutions and indigenous innovation in shaping India’s future industrial landscape.