L&T Wins Large Coal Gasification Order To Boost India’s Energy Security Push

Mumbai: Larsen & Toubro has strengthened its position in India’s energy infrastructure sector after winning a major engineering, procurement and construction contract linked to the country’s growing coal gasification plans.

Coal-To-Ammonium Nitrate Project

The company announced that its Energy Hydrocarbon Onshore business has received a large order from Bharat Coal Gasification and Chemicals Ltd, a joint venture between Coal India Ltd and Bharat Heavy Electricals Ltd, for a coal-to-ammonium nitrate project in Odisha. The project will be executed on a Lump Sum Turnkey basis under LSTK Package-4, giving L&T single-point responsibility for the entire assignment.

Output Will Support Demand

The proposed facility is expected to convert coal into ammonium nitrate with a planned production capacity of 2,000 tonnes per day. The output will support demand from India’s mining, infrastructure and industrial sectors, where ammonium nitrate is widely used. L&T said the project scope includes process licensing, engineering, procurement, construction, commissioning, project management and final handover of the plant and related facilities.

Promoting Aatmanirbhar Bharat

The order comes at a time when India is pushing to reduce import dependence and increase domestic production of value-added products derived from coal. Under the Aatmanirbhar Bharat initiative, the country has targeted 100 million tonnes of coal gasification capacity by 2030. The broader mission aims to convert high-ash domestic coal into products such as methanol, ammonia, fertilisers, synthetic natural gas and ammonium nitrate.

Important Role In India's Energy Transition

Deputy Managing Director and President Subramanian Sarma said the order expands L&T’s role in the gasification and downstream chemicals EPC segment. He indicated that indigenous gasification infrastructure would play an important role in India’s energy transition while reinforcing the company’s ability to execute large and complex industrial projects. Senior Vice President and Head of L&T Onshore E S Sathyanarayanan added that the contract reflects customer confidence in the company’s engineering capabilities and focus on safety and quality standards.

L&T Energy Hydrocarbon Onshore is among India’s largest EPC businesses and has delivered projects across refinery expansions, petrochemical complexes, LNG terminals, fertiliser plants and cross-country pipelines. The latest order further adds to its presence in strategically important industrial and energy infrastructure projects.

Disclaimer: This article is based solely on information disclosed in Larsen & Toubro’s official press release and regulatory filing dated May 5, 2026. No independent verification or external reporting has been used in preparing this article.