L&T Power to pump in Rs 30,000 cr to expand capacity | business | Hindustan Times
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L&T Power to pump in Rs 30,000 cr to expand capacity

business Updated: Mar 08, 2010 21:29 IST
HT Correspondent

L&T Power Development Company, an unit of Larsen & Toubro (L&T), the country’s largest engineering and construction firm, plans to generate 5,000 mw (mega watt) by 2015 at a cost of Rs 30,000 crore. Financial closure of power projects to generate another 5,000 mw will also take place by 2015, the company said.

“We will be able to generate 5,000 mw power by 2015, with the first plant in Rajpuria, Rajasthan, commissioning by January 14, 2014. We plan to achieve financial closure of another 5,000-mw of power projects by 2015,” said A.K. Chaatwani, senior executive vice-president, L&T Power.

The company will spend Rs 30,000 crore on the three plants. “The funding will be done through a mix of equity and debt (20 per cent equity and 80 per cent debt),” said R. Shankar Raman, senior vice-president, finance and legal, L&T. The company is looking to invest around Rs 10,000 crore on the 1,320-mw Rajpuria plant.

“At pesent, we have only coal- based power plants. In future, we are looking at gas-based power generation,” said Chaatwani. The company is planning power plants in Orissa, Jharkhand and Maharashtra.

L&T Power said that according to the memorandum of understanding (MoU) signed with the Karnataka government, 50 per cent power generated will be given to Karnataka, while the rest will be given to Chattisgarh, where the plant is based.