Larsen & Toubro 's Energy Hydrocarbon Onshore business has secured a large order from Bharat Coal Gasification and Chemicals Ltd (BCGCL), a joint venture of Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL), for a Coal-to-Ammonia-Nitrate project located in Odisha. The order was announced on May 05, 2026, and falls under the company's 'Large' order classification, representing a contract value in the range of ₹2,500 to ₹5,000 crore.

Project Scope and Key Details

The order covers the development of a Nitric Acid and Ammonium Nitrate Plant, to be executed on a Lump Sum Turnkey (LSTK Package-4) basis with single-point responsibility. Once operational, the facility is planned to produce 2,000 tonnes per day of ammonium nitrate, catering to the growing requirements of India's mining, infrastructure, and industrial sectors.

The following table summarises the key parameters of the order:

The comprehensive scope of work includes:

• Process licensing and basic design
• Detailed engineering and procurement
• Construction, including mechanical completion
• Pre-commissioning, commissioning, and sustained load runs
• Performance guarantee test runs
• Overall project management and final plant handover

Strategic Significance and National Context

This order aligns with India's Aatmanirbhar Bharat initiative, under which the country has set an ambitious target of achieving 100 million tonnes of coal gasification capacity by 2030. The mission focuses on converting high-ash domestic coal into value-added products such as ammonium nitrate, methanol, ammonia, Synthetic Natural Gas, and fertilisers, with the objective of reducing import dependence and strengthening India's industrial self-reliance.

Leadership Commentary

Mr Subramanian Sarma, Deputy Managing Director & President - L&T, commented: "This large order strengthens L&T's presence in the gasification and downstream chemicals EPC space. Indigenous gasification infrastructure will play a pivotal role in India's energy transition, and this order reinforces our ability to deliver complex, technology-intensive projects at scale."

Mr E S Sathyanarayanan, Senior Vice President & Head of L&T Onshore and Member of L&T's Executive Committee, added: "Winning the LSTK Package-4 order reflects BCGCL's trust in our execution capabilities. Our robust engineering and unwavering focus on EHS and quality will ensure reliable and efficient delivery of the Nitric Acid and Ammonium Nitrate facilities."

About L&T Energy Hydrocarbon Onshore

L&T Energy Hydrocarbon Onshore is one of India's largest EPC businesses, delivering comprehensive Lump Sum Turnkey solutions across upstream, midstream, and downstream hydrocarbon sectors. The business has an established execution track record across geographies, having delivered refinery expansions, petrochemical complexes, gas processing plants, fertiliser plants, LNG terminals, and cross-country pipelines. Larsen & Toubro is a USD 30 billion Indian multinational enterprise engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating across multiple geographies for over eight decades.

L&T Order Classification Reference

Larsen & Toubro has successfully completed the divestment of its entire shareholding in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited for ₹1,461.47 crore. The transaction represents a significant portfolio optimization move as the engineering giant exits its urban transportation infrastructure investment.

Official Transaction Confirmation

According to the official press release issued on April 30, Larsen & Toubro signed the divestment agreement on April 29 with Hyderabad Metro Rail Limited, a fully state-owned enterprise of the Government of Telangana. The comprehensive divestment involved the sale of 741,29,99,999 equity shares, marking the complete exit from this urban infrastructure asset.

Strategic Portfolio Optimization

The divestment represents a value-driven monetisation of a mature infrastructure asset and aligns with L&T's broader strategy of exiting the development projects portfolio. This strategic move enables capital redeployment in core engineering and technology-led businesses, reflecting the company's focus on strengthening its portfolio of core operations.

Mr S N Subrahmanyan, Chairman & Managing Director of L&T, commented: "This transaction reflects L&T's continued focus on creating long-term value and strengthening its portfolio of core, technology-led businesses. Hyderabad Metro Rail project is a world-class asset and a good example of our ability to deliver large-scale infrastructure that transforms cities and improves quality of life."

Project Legacy and Future Expansion

Hyderabad Metro, operated by LTMRHL, represents one of the largest Public-Private Partnership metro rail projects globally. The project spans approximately 69 km across three corridors and has been a landmark urban infrastructure initiative undertaken in partnership with the Government of Telangana. The project has significantly enhanced connectivity in Hyderabad and contributed to economic growth and urban development in the region.

Post acquisition, HMRL has plans to expand the metro network, which will further strengthen this asset's presence in India's fast-growing urban transit sector. Mr D K Sen, Advisor to L&T CMD, Development Projects, noted: "Hyderabad Metro stands as a testament to L&T's capability to conceptualise, execute and operationalise large-scale infrastructure projects under the PPP framework."

Financial Impact and Regulatory Compliance

L&T Metro Rail (Hyderabad) Limited maintained a modest contribution to Larsen & Toubro's consolidated financials prior to the divestment. The subsidiary's operational scale within the parent company's portfolio demonstrates the focused nature of this strategic exit.

The transaction has been conducted under SEBI Regulation 30 of SEBI Listing Obligations and Disclosure Requirements, with official notifications sent to BSE Limited and National Stock Exchange of India Limited. Following completion, the release of corporate guarantees and letters of comfort previously issued by Larsen & Toubro will proceed as Hyderabad Metro Rail Limited refinances existing debt.