Larsen & Toubro Secures EPC Contract for TAN Project of Chambal Fertilisers and Chemicals

  • 11-Apr-2023
  • Journalist: Jaideep

New Delhi: Larsen & Toubro Limited has been awarded an EPC contract worth Rs. 960.71 crore by Chambal Fertilizers and Chemicals Limited on April 5, 2023. The contract is for the Technical Ammonium Nitrate (TAN) Project, which involves the setting up of a plant for manufacturing Technical Ammonium Nitrate. The company's plant will be situated at its current site in Gadepan, District Kota, Rajasthan, and it is estimated to possess a yearly capacity of around 2,40,000 Metric Tons (MT).

It will also include a plant to manufacture approximately 2,10,000 MT per annum of weak Nitric Acid. The project is expected to be finished by October 5, 2025, which is 30 months after April 5, 2023.

The agreement entails the complete scope of the project, which comprises design, engineering, procurement, equipment and material supply, construction, project management, pre-commissioning, commissioning, and the transfer or grant of necessary licenses for the successful completion of the project and its corresponding facilities. The payment will be based on milestones achieved, with an initial advance payment of 10% upon submission of a bank guarantee provided by the contractor.

Chambal Fertilizers and Chemicals Limited, a key player in India's urea production, has been awarded a contract worth Rs. 960.71 crore, plus applicable Goods and Services Tax. The contract is set to be completed within a 30-month timeline, beginning on April 5, 2023. Chambal has been responsible for contributing nearly 13% of the total urea produced in the country over the past 20 years, ensuring food security for the nation. Their nitrogenous fertilizer facilities, situated in Gadepan, Rajasthan are state-of-the-art and have an annual production capacity of approximately 3.4 million MT of Urea. These facilities are primary providers of Urea in the foremost agricultural states throughout India.

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