+
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
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App