Larsen & Toubro Ltd (L&T) on Thursday said it has bagged an EPC (Engineer-Procure-Construct) package valued over Rs 1,400 crores for the expansion of Vizag Steel Plant of Rashtriya Ispat Nigam Ltd (RINL) - through its international consortium partners of Paul Wurth Italia and India.
This is the largest single-value EPC order by the client and was bagged against international competition from Chinese, Korean and Russian firms in the fray, L&T informed the BSE.
RINL had invited bids for installation of a new third blast furnace to double its capacity to 6.5 MTPA of hot metal from the present level of 3.2 MTPA.
In line with the National Steel Policy envisaging production of 110 million tonnes per annum (MTPA) of steel in the country by the year 2019-20, RINL has embarked upon a capacity expansion at Vizag.
L&T would construct the new blast furnace having a capacity of 2.5 million tonnes of hot metal per year. This is the second biggest blast furnace in India and L&T's Construction Division, ECC, will execute this contract in consortium with Paul Wurth Italia within 30 months, L&T added.
L&T's scope of work includes complete detailed engineering apart from certain areas of basic engineering based on the process-engineering being supplied by Paul Wurth. Apart from this, complete site services including the civil and structural works and erection of equipment would be undertaken by L&T, with supervision being provided by Paul Wurth.
L&T's contract-value in this project is pegged at around Rs 810 crores.