L&T Wins Large Coal-To-Ammonia-Nitrate Order In Odisha Ahead Of Q4 Results

Larsen and Toubro (L&T) Ltd picked up a large order on Tuesday from Bharat Coal Gasification and Chemicals Limited (BCGL). It is a joint venture between Coal India Limited and Bharat Heavy Electricals Limited for a coal-to-ammonia-nitrate plant in Odisha.

L&T has not disclosed the exact contract value. Under the company's internal classification system, a large order typically falls in the ₹2,500 crore to ₹5,000 crore range.

The win lands on the same day the engineering giant is due to announce its March quarter earnings. L&T shares were down 1.5% at ₹4,032 at 10:50 AM today, though the stock has added 10% over the past month.

What Has Been Commissioned

The order covers setting up a nitric acid and ammonium nitrate plant. It will be executed on a lump sum turnkey basis. This means one contractor will handle the full project, end to end.

The plant will convert coal into ammonium nitrate once it starts operations. It is designed to produce 2,000 tonnes per day. This capacity can support rising demand from mining, infrastructure, and industrial sectors in India.

The Bigger Picture

This project is part of India's coal gasification programme, which sits under the Aatmanirbhar Bharat initiative. The government wants 100 million tonnes of coal gasification capacity in place by 2030, turning high-ash domestic coal into products like ammonium nitrate, methanol, ammonia, synthetic natural gas and fertilisers instead of importing them.

India sits on large coal reserves that currently have limited industrial application because of their high ash content. Gasification turns that coal into something the economy can actually use, reduces the import bill and builds domestic manufacturing capability in segments where India has historically been dependent on foreign supply.

Also Read - Manappuram Finance Q4 FY26 Results: Profit At ₹404 Crore; ₹0.50 Dividend Announced

What Leadership Said

Mr Subramanian Sarma, Deputy Managing Director and President at L&T, said the order builds on the company's position in gasification and downstream chemicals engineering, procurement and construction work. He described domestic gasification infrastructure as a key part of India's energy transition rather than a peripheral industrial project.

Mr E S Sathyanarayanan, Senior Vice President and Head of L&T Onshore, said the contract reflects the client's confidence in the company's delivery track record and its standards on environment, health and safety.

Sources

CNBC TV18

Larsen and Toubro