Bharat Heavy Electricals Limited (BHEL) bagged a major project order worth approximately ₹2,800 crore from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India Limited and BHEL. The contract further strengthens BHEL’s position in India’s emerging coal gasification and value-added chemicals segment. The project will focus on building a syngas purification plant for a coal-to-ammonium nitrate facility in Odisha.
Project to Support Coal Gasification Push
The upcoming plant will be located at Lakhanpur in Jharsuguda district, Odisha, and forms part of the government’s broader strategy to promote coal gasification, import substitution, and domestic chemical production. By converting coal into syngas and downstream chemicals, the facility aims to create higher-value products while improving resource efficiency. Consequently, the project aligns with India’s long-term goal of reducing dependence on imported feedstocks.
BHEL to Deliver End-to-End EPC Execution
Under the contract, BHEL will undertake complete turnkey execution of the project. Specifically, the scope of work includes:
*Design and detailed engineering
*Equipment supply
*Civil construction
*Installation and commissioning
*Maintenance services
By managing the entire value chain, BHEL aims to ensure seamless execution and timely delivery. The company expects to complete the project within 42 months from the date of order.
Long-Term Operations and Maintenance Support
Following commissioning, BHEL will continue to support the facility by providing operations and maintenance (O&M) services for 60 months. This extended engagement not only ensures operational efficiency but also provides the company with sustained revenue visibility.
Related-Party Transaction at Market Terms
Since BCGCL is a joint venture in which BHEL holds a stake, the contract qualifies as a related-party transaction. However, the company clarified that the order has been awarded at arm’s length and on market terms, ensuring transparency and fairness.
Strengthening Order Book and Energy Transition Role
As reported by freepressjournal.in, overall, the new order enhances BHEL’s project pipeline and order book strength, while reinforcing its growing role in energy transition, coal gasification, and downstream chemical infrastructure. As India accelerates investments in domestic energy and chemical production, projects like this position BHEL as a key technology and EPC partner in the country’s evolving industrial landscape.
