Larsen & Toubro bags large order for coal gasification project

Larsen & Toubro?s Energy Hydrocarbon Onshore business has secured a large order from Bharat Coal Gasification and Chemicals (BCGCL), a joint venture of Coal India and Bharat Heavy Electricals (BHEL), for a coal-to-ammonium nitrate project in Odisha.

As per L&T?s internal classification, the contract falls under the ?large? category, with an estimated value in the range of Rs 2,500 crore to Rs 5,000 crore.

The project involves setting up a nitric acid and ammonium nitrate plant to be executed on a lump sum turnkey (LSTK) basis with single-point responsibility. Once operational, the facility will convert coal into ammonium nitrate with a planned production capacity of 2,000 tonnes per day, catering to demand from the mining, infrastructure, and industrial sectors.

The scope of work includes process licensing; basic and detailed engineering; procurement and construction; along with mechanical completion, pre-commissioning, commissioning, performance test runs, and overall project management, culminating in final handover.

The project aligns with the Government of India?s ?Aatmanirbhar Bharat? initiative, which targets 100 million tonnes of coal gasification capacity by 2030 to reduce import dependence and enhance domestic manufacturing capabilities.

Subramanian Sarma, Deputy Managing Director & President?L&T, said, This large order strengthens L&T?s presence in the gasification and downstream chemicals EPC space. 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.?

E. S. Sathyanarayanan, senior vice president & head of L&T Onshore and member of L&T?s executive committee, said, Winning the LSTK Package-4 order reflects BCGCL?s trust in our execution capabilities. Our robust engineering and unwavering focus on EHS and quality will ensure reliable and efficient delivery of the nitric acid and ammonium nitrate facilities.?

L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services, operating across multiple geographies. On a consolidated basis, L&T's net profit declined 4.27% year-on-year to Rs 3,215.11 crore in Q3 FY26, even as revenue from operations rose 10.48% to Rs 71,449.70 crore in Q3 FY26.

Shares of Larsen & Toubro fell 1.79% to Rs 4,026.85 on the BSE.

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