L&T, UAE consortium targets Rs 44 billion NLC project
POWER & RENEWABLE ENERGY

L&T, UAE consortium targets Rs 44 billion NLC project

According to NLC India's CMD, Prasanna Kumar Motupalli, industrial conglomerate Larsen & Toubro and the UAE's energy service firm Petrofac have expressed interest in the development of NLC India's lignite-to-methanol plant in Neyveli, Tamil Nadu, worth Rs 44 billion. Motupalli stated that four companies were interested in the project and were currently in the process of submitting their bids. He further mentioned that the public sector company expected to finalise and award the project by the end of the following month.

Last year in October, Engineers India (EIL), the project management consultant for the proposed development, initiated a global tender for the project. The plant is anticipated to have an annual production capacity of approximately 400,000 tonne. Motupalli affirmed that NLC currently held the leading position in lignite-to-methanol or coal-to-methanol projects. He expressed their active pursuit of awarding the project, noting that the tendering process had already taken place, technical tie-ups were established, and preparations had begun at the Neyveli site. He expected the project to be awarded by the end of July, after which activities would commence promptly.

Motupalli added that four parties had already shown interest in the project and were actively progressing with their quotations. Petrofac from the UAE and L&T were among the interested parties, along with two others. The project would be executed through an engineering, procurement, and construction (EPC) contract, where NLC would provide the technology while the selected party would supply and install the system. The commissioning of the project was scheduled for 2027. L&T had been involved in gasification projects since 2004, having successfully completed 11 projects in the field. Petrofac, on the other hand, recently partnered with OCI Global, a global player in ammonia, fertilizers, and methanol, to deliver gasification-based green methanol projects.

NLC's lignite-to-methanol project, which is part of its diversification plan, aligns with the government's coal gasification strategy to meet ambitious net-zero targets. The company, previously known as Neyveli Lignite Corporation of India, has primarily focused on lignite mining and establishing lignite-based power plants. Recently, it established a wholly-owned subsidiary called NLC India Renewables to oversee its renewable energy ventures. The government introduced the National Coal Gasification Plan in November 2021, setting a target to gasify 100 million tonnes of coal by 2030. However, the plan is still gaining momentum, and the government is considering additional incentives for companies engaging in coal gasification, including GST reimbursement for coal procurement.

Also read:
Amazon to Invest $15 Billion in India by 2030
L&T, DRDO ink deal for Scorpene submarines' AIP modules


According to NLC India's CMD, Prasanna Kumar Motupalli, industrial conglomerate Larsen & Toubro and the UAE's energy service firm Petrofac have expressed interest in the development of NLC India's lignite-to-methanol plant in Neyveli, Tamil Nadu, worth Rs 44 billion. Motupalli stated that four companies were interested in the project and were currently in the process of submitting their bids. He further mentioned that the public sector company expected to finalise and award the project by the end of the following month. Last year in October, Engineers India (EIL), the project management consultant for the proposed development, initiated a global tender for the project. The plant is anticipated to have an annual production capacity of approximately 400,000 tonne. Motupalli affirmed that NLC currently held the leading position in lignite-to-methanol or coal-to-methanol projects. He expressed their active pursuit of awarding the project, noting that the tendering process had already taken place, technical tie-ups were established, and preparations had begun at the Neyveli site. He expected the project to be awarded by the end of July, after which activities would commence promptly. Motupalli added that four parties had already shown interest in the project and were actively progressing with their quotations. Petrofac from the UAE and L&T were among the interested parties, along with two others. The project would be executed through an engineering, procurement, and construction (EPC) contract, where NLC would provide the technology while the selected party would supply and install the system. The commissioning of the project was scheduled for 2027. L&T had been involved in gasification projects since 2004, having successfully completed 11 projects in the field. Petrofac, on the other hand, recently partnered with OCI Global, a global player in ammonia, fertilizers, and methanol, to deliver gasification-based green methanol projects. NLC's lignite-to-methanol project, which is part of its diversification plan, aligns with the government's coal gasification strategy to meet ambitious net-zero targets. The company, previously known as Neyveli Lignite Corporation of India, has primarily focused on lignite mining and establishing lignite-based power plants. Recently, it established a wholly-owned subsidiary called NLC India Renewables to oversee its renewable energy ventures. The government introduced the National Coal Gasification Plan in November 2021, setting a target to gasify 100 million tonnes of coal by 2030. However, the plan is still gaining momentum, and the government is considering additional incentives for companies engaging in coal gasification, including GST reimbursement for coal procurement. Also read: Amazon to Invest $15 Billion in India by 2030 L&T, DRDO ink deal for Scorpene submarines' AIP modules

Next Story
Real Estate

Integrated Waterproofing Strategies

Waterproofing buildings used to be an annual pre-monsoon affair but the evolution of real-estate development has changed that approach. In new developments, developers are weaving waterproofing solutions into both the design and construction phases, an approach that Nikhil Madan, Managing Director, Mahima Group, says, “is all about ensuring lasting durability [of the building] and keeping lifecycle risks including water seepage and extensive maintenance to a minimum.”Watertight by designAluminium formwork systems aren’t commonly thought of as a waterproofing tool but at the Mahima Group,..

Next Story
Infrastructure Urban

GROHE Showcases Water-Led Design At Milan

GROHE unveiled its GROHE SPA Aqua Sanctuary at Milan Design Week 2026, transforming Piccolo Teatro Studio Melato into an immersive showcase of water, design and wellbeing. Built on the philosophy of ‘Wellbeing Through Water’, the installation reimagined bathrooms as holistic spaces for relaxation, rejuvenation and self-care.The Aqua Sanctuary was presented through three interconnected sanctums. The first showcased the 3D-printed GROHE SPA AquaTree shower and faucet, highlighting bespoke innovation and biophilic design. The second featured the Atrio Private Collection and GROHE SPA x Buster..

Next Story
Infrastructure Transport

Rahee Group Expands Rail Manufacturing Capacity

Rahee Group has outlined a multi-year investment roadmap to expand its operational footprint and strengthen manufacturing capabilities for India’s growing railway and urban transit sector. The Group is expanding in Odisha with a new Track Component Casting Unit, for which the groundbreaking ceremony was held on 8 April 2026 in the presence of Odisha Chief Minister Mohan Charan Majhi.The Group’s flagship EPC arm, Rahee Infratech Ltd, continues to focus on complex rail infrastructure projects, including track systems, bridges, viaducts and ballastless infrastructure. Its wholly owned subsidi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement