Bharat Heavy Electricals Limited (BHEL) bagged a major order from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between BHEL and Coal India Limited (CIL), reinforcing its role in India’s coal gasification and chemicals value chain.
Scope Covers End-to-End Project Execution
The Letter of Acceptance (LoA) pertains to the coal gasification and raw syngas cleaning plant (LSTK-1 package) for BCGCL’s Coal-to-2000 TPD Ammonium Nitrate Project at Lakhanpur in Jharsuguda district, Odisha. Under the contract, BHEL will undertake complete project execution, including design, engineering, equipment supply, civil works, erection, commissioning, and operation and maintenance (O&M) services.
Project Value and Timelines
The total contract value stands at approximately ₹5,400 crore, excluding GST. The project is scheduled for completion within 42 months, covering preliminary acceptance, commissioning, and performance guarantee tests. Following preliminary acceptance, BHEL will also provide O&M services for a period of 60 months, ensuring long-term operational reliability of the facility.
Boost to Coal Gasification and Chemical Production
As reported by projectstoday.com, the project marks a significant milestone in advancing coal gasification technology and ammonium nitrate production in India. Moreover, it supports the country’s efforts to enhance domestic chemical manufacturing capacity while leveraging indigenous engineering capabilities.
