India’s largest engineering and construction conglomerate, Larsen and Toubro (L&T), envisions a larger role for nuclear energy in its overall business plans.
The company said on Tuesday that it expects the nuclear business to contribute Rs 7,000 to Rs 8,000 crore in the next five years — from the present Rs 1,000 crore.
L&T, which has been catering to the requirement of India’s nuclear power stations for over 40 years, said it has created one of the biggest manufacturing facilities at Hazira, capable of manufacturing nuclear reactors that can produce 4,000-6,000 mega watts of power every year.
Speaking to reporters, chairman and managing director, L&T, AM Naik said the company is geared up to undertake turnkey execution of nuclear power plant projects, and has already entered into tie-ups with four of the five top global suppliers of nuclear reactors.
“We want to be technology neutral and leave it to for the Atomic Energy Commission to decide which technology is most suited for India,” he said.
Nuclear power plants in India, as per Naik, are presently not being set up on turnkey basis. “The Nuclear Power Corporation of India procures individual items for setting up of a nuclear power station. But L&T is geared up to execute nuclear projects on turnkey basis as is done in case of conventional power plants,” he said.
“If we start getting orders on turnkey basis, our revenues will go anywhere upto Rs 8,000 crore. However, if it continues to a piecemeal approach by the implementing agencies, then our revenues from nuclear business will be around Rs 1,500 to 2,000 crore a year.”
The memorandum of understanding (moUs) executed by L&T so far includes that with GE-Hitachi (for upto1350 mw advanced reactors), Westinghouse (1000 mw sets), Atomic Energy of Canada (upto 1200 mw sets) and with ASC of Russia (for 1000 mw sets).
“We are also in talks with the fifth leading supplier of nuclear sets — Areva (for 1,650 mw nuclear power sets) — and hope to sign an agreement soon with them,” Naik said adding that L&T will also approach Mitsubishifor 1750 mw plus reactors.