New Delhi: Bharat Heavy Electricals Limited (BHEL) has secured a major contract worth approximately ₹5,400 crore (excluding GST) from Bharat Coal Gasification and Chemicals Limited (BCGCL) for setting up a Coal Gasification & Raw Syngas Cleaning Plant in Odisha. The order marks a significant milestone in India’s push towards cleaner and more efficient utilization of coal resources.
Scope of the Project
The contract pertains to the LSTK-1 package of BCGCL’s Coal-to-Ammonium Nitrate Project located at Lakhanpur in Jharsuguda district, Odisha. The scope of work includes design, engineering, supply of equipment, civil construction, erection, commissioning, and operation and maintenance (O&M) of the coal gasification and raw syngas cleaning plant.
As per the agreement, preliminary acceptance, including commissioning and performance guarantee tests, is scheduled to be completed within 42 months from the date of issuance of the Letter of Acceptance (LoA). Additionally, BHEL will provide O&M services for a period of five years (60 months) after preliminary acceptance.
Strategic Partnership and Transaction Details
BCGCL is a joint venture between Coal India Limited (51%) and BHEL (49%). Since BHEL is both a promoter and the executing agency for the project, the contract qualifies as a related party transaction. The company has clarified that the transaction has been executed at arm’s length, in compliance with regulatory and governance norms.
Business Impact and Industry Significance
The order strengthens BHEL’s presence in coal gasification and clean energy infrastructure, aligning with national objectives to enhance value addition from domestic coal while reducing environmental impact. The project is expected to play a key role in promoting advanced coal-to-chemical technologies and supporting India’s energy transition roadmap.
The substantial contract value also reinforces BHEL’s order book visibility and highlights its capability to execute complex, large-scale industrial projects within the country.
About BHEL
Bharat Heavy Electricals Limited (BHEL) is India’s leading engineering and manufacturing enterprise in the energy and infrastructure sectors. A Maharatna PSU, BHEL delivers integrated solutions in power generation, transmission, transportation, defence, and industrial equipment, playing a pivotal role in India’s infrastructure development and energy security.
