With the department of atomic energy (DAE) putting the domestic opportunity at $43 billion (Rs 2,04,700 crore) from the country’s emerging nuclear scenario in the next 10 years, engineering and manufacturing giant Larsen & Toubro (L&T) is hoping to rake in big business and has put in place big plans to exploit this opportunity.
MV Kotwal, board member and senior executive vice-president, L&T, spoke to Hindustan Times about his company’s preparedness in this regard.
What is L&T’s capability in the nuclear space and how do you see the business potential emerging in the coming years?
From the present installed capacity of 4,120 megawatt electric (mwe), India’s nuclear power capacity will be 20,000 mwe by 2020 and 63,000 mwe by 2030. There is a huge potential for a company like L&T, which has been associated with India’s nuclear programme since 1960s, starting with the supply of critical components and later getting to do the main reactor itself at Rajasthan. L&T has associated with 15 out of the 17 nuclear reactors in the country. A dedicated facility for manufacturing specialised components for nuclear reactors is also being put jointly by L&T and the Nuclear Power Corporation of India. We are positioning ourselves as a one stop solution for nuclear power plants in India.
What kind of revenues are you expecting from the business?
The business we are expecting is around Rs 6,000 crore by 2011-12 and going up to Rs 10,000 crore by 2015-16.
What are the opportunities globally and which markets are you eyeing?
In the world, total 130 reactors are planned and 282 reactors are proposed in the next 10 years. Conservative estimates of total investments envisaged are $320 billion (Rs 14,72,000 crore) in the next 10 years. Major export markets include USA, EU, China and Russia. Countries on L&T’s immediate radar include USA and EU for exports.
What is L&T’s nuclear business strategy?
L&T wants to remain technology neutral. This means that we want to cater to the requirements of all types of reactors, be in India or abroad. We have already established strategic tie-ups with the major nuclear technology providers like the Atomic Energy Commission (Canada), Westinghouse-Toshiba (USA), GE-Hitachi (USA) and Atomstryoexports (Russia). We also have developed a good working relationship with Areva (France).