Engineering and construction major Larsen & Toubro (L&T) has bagged a ‘large’ order from Bharat Coal Gasification and Chemicals Limited (BCGCL) for setting up a coal-to-chemicals plant in Odisha with a capacity of 2,000 tonnes per day (TPD).
The project marks a significant step in India’s push toward coal gasification and value-added chemical production, aimed at reducing dependence on imports of chemicals and fuels. The plant will convert coal into synthesis gas (syngas), which can then be processed into a range of downstream chemicals used in fertilizers, plastics, and industrial applications.
L&T will execute the project on an engineering, procurement, and construction (EPC) basis, covering design, supply, construction, and commissioning. The classification of the contract as “large” typically indicates a value ranging between ₹2,500 crore and ₹5,000 crore, under the company’s internal project categorization.
The facility will be developed in Odisha, a region rich in coal reserves and emerging as a hub for heavy industries and energy projects. The initiative aligns with the strategic vision of the Government of India to promote coal gasification as part of its energy security and industrial development roadmap.
Coal-to-chemicals technology has gained traction in recent years as countries look to utilize domestic coal resources more efficiently while diversifying energy and chemical supply chains. The Indian government has set ambitious targets to increase coal gasification capacity, positioning it as a cleaner alternative to direct coal combustion.
Industry experts note that projects of this scale could significantly boost domestic manufacturing capabilities while creating employment opportunities and supporting regional economic growth. However, they also emphasize the importance of balancing industrial expansion with environmental considerations, given the carbon footprint associated with coal-based processes.
For L&T, the order strengthens its presence in the process industries segment and underscores its capabilities in executing complex, large-scale industrial projects. The company continues to expand its portfolio in energy transition-related sectors, including green hydrogen, renewable energy, and advanced chemical processing.
The BCGCL project is expected to play a pivotal role in advancing India’s coal utilization strategy while contributing to the development of a more self-reliant industrial ecosystem