(Image Source: CNBC 18)
Larsen & Toubro has landed a major contract from Bharat Petroleum Corporation Ltd to construct India’s largest petrochemical facility at Bina in Madhya Pradesh. The order, valued between Rs 5,000 crore and Rs 10,000 crore, marks a significant win for L&T’s Hydrocarbon Onshore business and shows the company’s strength in building downstream energy infrastructure. The contract operates on a Lump Sum Turnkey basis, meaning L&T takes full responsibility for execution and cost control.
The project will involve engineering, procurement, construction and commissioning of a Linear Low-Density Polyethylene and High-Density Polyethylene swing unit with two trains able to produce 1,150 KTPA combined. This will be India’s largest LLDPE and HDPE swing unit, setting a new record for polyethylene production capacity. The swing design lets producers choose between making either LLDPE or HDPE, depending on what the market needs, making the facility flexible and responsive to demand shifts.
BPCL Bina Refinery Expansion and India’s Self-Reliance Goals
This project is part of BPCL’s broader Bina Petrochemicals and Refinery Expansion initiative, which will increase refinery capacity from 7.8 MMTPA to 11 MMTPA and build out a complete petrochemical complex. The expansion directly backs India’s Aatmanirbhar Bharat push by strengthening domestic manufacturing and cutting the country’s reliance on imported polymers. India currently brings in a big chunk of its polyethylene from overseas, making this facility strategically necessary for achieving self-sufficiency.
The Bina refinery expansion is one of India’s most ambitious downstream petrochemical undertakings. Beyond the LLDPE/HDPE swing unit, the facility will include multiple processing units, storage systems, and utilities. L&T’s appointment as EPC contractor highlights the company’s technical depth and history of handling large, complicated petrochemical projects. Multiple contractors are working on different parts of the full project, with L&T securing this major portion.
L&T’s Track Record in Hydrocarbon Engineering and Construction
L&T Onshore brings thirty years of hands-on experience across upstream, midstream, and downstream hydrocarbon sectors. The company has delivered numerous refinery expansions, petrochemical complexes, gas processing plants, fertiliser facilities, LNG terminals, and pipelines crossing countries. Its full EPCC capabilities span concept studies, basic and detailed engineering, advanced technical analysis, global procurement, fabrication, and commissioning work.
This order proves L&T remains one of India’s biggest EPC operators. The company manages over 4 million man-hours of engineering expertise through internal engineering teams, dedicated procurement divisions, and construction units. The Lump Sum Turnkey model shows the contractor’s confidence in its planning, resource management, and ability to deliver projects on time. Any cost overruns or delays become L&T’s problem, creating real incentive for tight execution and discipline.
What This Means for L&T’s Growth and Outlook
Subramanian Sarma, Deputy Managing Director and President of L&T, said the order will strengthen the company’s balance sheet and show proven credentials in downstream hydrocarbon EPC work. In India’s project world, major EPC contracts of this size typically run three to four years, bringing steady revenue and employing thousands of workers across different skill levels.
The win comes as L&T also bags large orders from the Madhya Pradesh State Tourism Development Corporation, showing the company can grab significant contracts across multiple business lines. The company sees tourism orders between Rs 2,500 crore and Rs 5,000 crore as large, with this BPCL contract jumping up to the major tier. Over recent months, L&T has also pushed into utilities with a focus on green hydrogen, battery storage, and transmission and distribution projects, targeting 12 GW in renewable EPC orders for FY26.
Why This Project Matters for India
Beyond L&T’s commercial success, the order has strategic weight for India’s manufacturing and self-reliance. Polyethylene is a critical input for packaging, cars, construction, and consumer goods. Building India’s largest swing unit will help BPCL and L&T strengthen supply chains and reduce dependence on global polymer market swings. The project will create jobs during construction and ongoing employment once it runs, boosting Madhya Pradesh’s industrial growth.
E S Sathyanarayanan, Senior Vice President and Head of L&T Energy Hydrocarbon Onshore, said the company is committed to delivering safely and with high-quality standards, reflecting how critical safe execution is in petrochemical facilities where even small mistakes carry big consequences. For India’s downstream sector, this project represents tangible progress toward building world-class manufacturing capacity at home.
