L&T Share Price in Focus; Eyes Opportunities in Coal Gasification Sector

Larsen & Toubro (L&T) is preparing to explore opportunities in the coal gasification segment as the sector gains momentum under India's energy transition and industrial development agenda.  

The company sees potential in the emerging space but plans to pursue projects selectively while leveraging its engineering and project execution expertise. 

Coal Gasification Emerges as a Strategic Opportunity 

As per The Business Standard report, speaking about the sector's prospects, Subramanian Sarma, Deputy Managing Director and President of L&T, said coal gasification aligns with broader national objectives related to energy security and industrial growth. 

"We will definitely evaluate these opportunities. But like in any new area, we will be selective and disciplined in how we participate," Sarma said. 

While hydrogen and green fuels remain key focus areas within the company's new energy strategy, Sarma noted that coal gasification is becoming an important part of the evolving energy landscape. He added that L&T already possesses capabilities across the value chain, including design, engineering, procurement, construction and supply. 

"We were already present in this space from a capabilities standpoint, and we see this as an emerging opportunity going forward," he said. 

Scale and Integration Key to Project Viability 

According to Sarma, the commercial success of synthetic gas projects will depend on their size and integration with downstream industries.  

He said developers should focus on large-scale facilities linked to value-added products such as chemicals, fertilisers and fuels rather than smaller standalone projects. 

"The approach has to be to go for scale, not small projects, integrate with downstream value-added products such as chemicals, fertilisers or fuels," Sarma said. 

He also highlighted the importance of speed, efficiency and execution quality, noting that these factors can significantly influence overall project costs. As the ecosystem develops and more projects are commissioned, costs are expected to stabilise over time. 

Government Push Supports Sector Development 

The company's interest comes as the government advances the ₹37,500 crore National Coal Gasification Scheme, which aims to convert India's high-ash coal into cleaner syngas.  

The programme targets 100 million tonnes of gasification capacity by 2030 and seeks to reduce dependence on imported feedstocks such as liquefied natural gas (LNG), urea and methanol. 

Sarma described the government's efforts as a positive step for the industry. 

He added that policy continuity, long-term visibility and initial risk-sharing mechanisms would be important for large-scale projects to gain traction during the early stages of development.  

Recent Order Highlights Growing Presence 

L&T recently secured a major order from Bharat Coal Gasification and Chemicals Limited (BCGCL), a joint venture between Coal India and Bharat Heavy Electricals Limited (BHEL). The project involves a coal-to-ammonia-nitrate facility in Odisha with a planned production capacity of 2,000 tonnes per day. 

The facility is expected to support demand from India's mining, infrastructure and industrial sectors, further strengthening the country's domestic industrial ecosystem. 

Read More: IEX Launches Wholly Owned Subsidiary Indian Coal Exchange Limited for Online Coal Trading! 

L&T Share Price Performance  

As of 02 June 2026, at 10:30 AM, Larsen & Toubro Ltd share price is trading at ₹3,969.90 per share, reflecting a decline of 1.02% from the previous closing price.  

Conclusion 

As India accelerates coal gasification initiatives, L&T is positioning itself to participate in the emerging sector through a measured and selective approach. Backed by its EPC capabilities and recent project wins, the company sees long-term potential in coal gasification as part of the country's broader energy and industrial strategy. 

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