L&T secures major EPC contract for Odisha coal-to-ammonium nitrate project

Bharat Coal Gasification and Chemicals Ltd has commissioned L&T Energy Hydrocarbon to build a specialized industrial chemical plant in Odisha. The facility is designed to process domestic coal into 2,000 tonnes of ammonium nitrate daily, addressing the raw material requirements of India’s heavy industry and mining sectors.

L&T Energy Hydrocarbon has been awarded a significant turnkey contract by Bharat Coal Gasification and Chemicals Ltd (BCGCL) to develop a new coal-to-ammonium nitrate facility in Odisha. BCGCL is a strategic joint venture between Coal India Limited and Bharat Heavy Electricals Limited, established to spearhead the conversion of coal into value-added chemicals. The agreement covers the entire project lifecycle, including engineering, procurement, and construction of the nitric acid and ammonium nitrate units.

This development is a critical step in reducing India's dependence on imported industrial chemicals. By utilizing indigenous coal gasification technology, the facility will produce 2,000 tonnes of ammonium nitrate per day. This output is essential for the mining and infrastructure industries, where it serves as a primary component for industrial-grade explosives. The project aligns with national policy goals to diversify the use of coal reserves beyond power generation.

For investors and industrial stakeholders, the project highlights the commercial viability of the coal-to-chemicals (C2C) pathway. It offers a strategic model for state-owned enterprises to stabilize supply chains and protect against international market volatility. Furthermore, the successful implementation of such large-scale gasification plants provides a technological roadmap for the domestic energy sector to pivot toward higher-margin industrial products while supporting long-term infrastructure growth.