The contract was awarded by Bharat Coal Gasification and Chemicals Ltd (BCGCL), a strategic joint venture between state-owned giants Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL). The project focuses on the development of a state-of-the-art nitric acid and ammonium nitrate facility. L&T Energy Hydrocarbon Onshore will execute the project on a lump sum turnkey basis, highlighting the company’s expertise in managing complex, large-scale industrial infrastructure.
Once fully operational, the facility is designed to convert domestic coal into ammonium nitrate with a substantial planned production capacity of 2,000 tonnes per day. Ammonium nitrate is a vital component for India’s mining and infrastructure sectors, primarily used in industrial explosives. By producing this chemical locally, the project aims to conserve valuable foreign exchange and insulate the domestic market from global supply chain fluctuations.
The comprehensive scope of the work includes basic design, detailed engineering, and procurement. L&T will also oversee the entire construction phase and project management before the final handover of the plant and its auxiliary facilities. This project aligns with the national vision of “Atmanirbhar Bharat,” leveraging India’s vast coal reserves to produce high-value chemicals.
Beyond its industrial output, the project is expected to provide a significant boost to the regional economy in Odisha. By integrating advanced gasification technology, the L&T-led project will support the growing requirements of India’s burgeoning construction and mining industries. As work begins on this critical infrastructure, it sets a new benchmark for the commercial and strategic application of coal-to-chemical technology in the country.
