"L&T Engages in Price Negotiations with NLC for Lignite Gasification Project"

Larsen & Toubro (L&T) has secured the leading position as the best technical bidder for NLC India's ambitious lignite gasification project, as confirmed by M Prasanna Kumar, Chairman and Managing Director of NLC India, in an exclusive statement to businessline.

The project, valued at ₹4,350 crore, aims to produce 'syn gas'—a blend of carbon monoxide and hydrogen—and subsequently convert it into methanol. NLC India had earlier released two distinct tenders: one for lignite to syn gas and the other for syn gas to methanol. In December 2023, Kumar disclosed to businessline that three entities had submitted bids for the 'lignite to syn gas' segment.

While the deadline for responding to the syn gas to methanol tender has been extended until the end of March, Air Products of the USA serves as the technology partner for the entire project. Additionally, the Government of India-owned Engineers India Ltd is entrusted with the project management responsibilities.

Upon completion, the project is anticipated to yield 400,000 tonnes of methanol using 2.5 million tonnes of lignite, effectively substituting ₹1,000 crore worth of crude oil imports.

Speaking at the sidelines of a stakeholders' meet organized by the Ministry of Coal to raise awareness about the burgeoning opportunities in domestic mining equipment manufacturing, Kumar revealed NLC India's interest in venturing into 'energy transition' initiatives. He disclosed discussions with the Nuclear Power Corporation of India (NPCIL) regarding the potential establishment of a small modular reactor (SMR). However, he clarified that the envisaged 200-MW nuclear plant would not be situated in Neyveli.

SMRs have garnered significant attention in the nuclear industry, with several companies exploring the deployment of small or micro nuclear reactors for localized electricity generation.

HBL