Larsen & Toubro, the $4 billion diversified engineering company, is throwing its hat in for a share of the Rs 1 lakh crore ultra mega power project pie.
The company, 80 per cent of whose revenues come from the engineering and construction business, is tying up with Toshiba and Mitsubishi for Rs 600 crore to manufacture supercritical turbines and boilers.
The tie-ups would take the joint venture route and be set up at individual investments of Rs 300 crore each. The company announced the tie-up with Mitsubishi today.
India is setting up a total of seven ultra mega power projects in seven states. These are Madhya Pradesh, Chhattisgarh, Gujarat, Maharashtra, Karnataka, Orissa and Andhra Pradesh.
Each of these projects would generate close to 4,000 megawatts of electricity. Out of the Rs 1 lakh crore investment, Rs 25,000 to Rs 30,000 crore would be equity investment, said industry sources.
The foray would make L&T the second player after Bharat Heavy Electricals Ltd to have the capacity to build turbines and boilers for ultra mega power projects.
L&T already builds large power projects under ‘engineer-procure-construct’ (EPC) contracts for power projects as well as manufactures complete condensing and feed heating systems for power plants.
The joint venture with Mitsubishi Heavy Electricals, with a capital outlay of close to Rs 300 crore, will have a product configuration catering to plant capacities ranging between 500 mw to 1,000 mw.
New Delhi would house the engineering centre for the new JV. The site for the manufacturing facility will be announced shortly and the manufacturing is expected to commence in the later part of FY 2008-09.