BCGCL Awards Four Turnkey Contracts for Coal-to-Chemical Complex
Bharat Coal Gasification and Chemicals Limited (BCGCL) is setting up India’s first Coal-to-Ammonium Nitrate plant in Lakhanpur, Odisha. The company is investing Rs. 25,000 Cr. for this project.
BCGCL is a joint venture (JV) between Bharat Heavy Electricals Limited (BHEL) and Coal India Limited (CIL). This JV was incorporated on 21st May 2024 for building this coal-to-chemical complex.
The company has awarded four Lump-Sum Turnkey (LSTK) packages for the facilities required to convert coal into Ammonium Nitrate. Off these four packages, Packages 1 & 2 were awarded to BHEL and Packages 3 & 4 to Larsen and Toubro (L&T).
BHEL’s Contract: Coal Gasification and Raw Syngas Cleaning Facilities
BHEL was awarded Package-1, having a contract value of Rs. 5,400 crore on 6th January 2026. This package pertains to the development of gasification and raw Synthetic Gas (syngas) cleaning facilities. These facilities will be responsible for coal gasification, which alters coal into raw syngas.
Following this, BHEL was awarded Package-2 on 10th February 2026, valued at Rs. 2,800 crore. Under this package, the company will build the Syngas Purification System. This purification system will clean and prepare the gas that will be obtained from Package-1 facilities for chemical synthesis.
L&T Contract: Ammonia synthesis and Ammonium Nitrate Complex
L&T received the Package 3 contract on 8th May 2026, valued between Rs. 1,000-2,500 crore. As per Package-3, L&T will build a 920-tonne-per-day Ammonia Synthesis Unit, which will take the purified gas from Package-2 and process it into anhydrous ammonia, serving as an intermediate step before producing Ammonium Nitrate.
The last LSTK package-4, valued between Rs. 2,500-5,000 crore, was awarded to L&T in May 2026. This package covers process licensing, basic engineering, and construction of the Nitric Acid and Ammonium Nitrate facilities. This will be the last step, bringing the facility to completion.
Project Timeline and Product Purchase Framework
Notably, under this project, Coal India will purchase the final product, i.e., Ammonium Nitrate, and use it in explosive activity for mining of coal.
Additionally, following the major approvals, environmental clearances, securing financial support, and awarding of LSTK packages, the project is expected to be commissioned by September 2029.
