₹481 Crore Air Separation Unit Contract Secured from BHEL for Odisha Coal-to-Ammonium Nitrate Project

Secured a ₹481 crore turnkey contract from BHEL for a 1200 TPD cryogenic Air Separation Unit at BHEL's Coal to Ammonium Nitrate (2000TPD) project in Bandhabal, Jharsuguda, Odisha.

Mon 28 Sep 2026

Contract Value

₹481 crore

Unit Capacity

1200 TPD cryogenic Air Separation Unit

Execution Period

Eight quarters

Expected Commissioning

FY29

Contract Type

Build and Transfer (Turnkey basis)

What was announced

Ellenbarrie Industrial Gases has secured a ₹481 crore contract from Bharat Heavy Electricals Limited (BHEL).

The scope covers design, engineering, supply, erection, testing, pre-commissioning, commissioning, trial run operation, operator training, demonstration of performance guarantees, supply of spares and handing over — all on a turnkey basis — of a 1200 TPD cryogenic Air Separation Unit (ASU).

The ASU serves BHEL's Coal to Ammonium Nitrate (2000TPD) project at Bandhabal, Jharsuguda District, Odisha.

Timeline and structure

• Execution period: eight quarters
• Commissioning expected in FY29
• Contract is on a Build and Transfer (B&T) basis and does not involve long-term ownership or operation of the plant

Context given by the company

The project forms part of India's push towards coal gasification under the National Coal Gasification Mission, aimed at reducing import dependence and building domestic capacity for chemicals, fertilisers and clean industrial feedstocks. The company notes the Government of India's stated vision of gasifying 100 million tonnes of coal annually by 2030.

Coal gasification plants need large volumes of oxygen and nitrogen, making cryogenic ASUs an integral part of every commercial-scale facility — which the company sees as a multi-year opportunity for industrial gas players.

Management comment

Joint Managing Director Varun Agarwal called it an important strategic milestone, noting it will be the largest plant built by Ellenbarrie till date and places the company among those capable of building plants of more than 1000 TPD.

How investors may read it

The order adds visibility to the engineering side of the business, beyond the traditional merchant and onsite industrial gas operations. Because it is a Build and Transfer contract, revenue arises from building and handing over the plant rather than from recurring gas supply over the plant's life.

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