Mar 22, 2008

L&T to add 4000 MW per annum capacity for super-critical boilers, steam turbine generators

Larsen & Toubro (L&T) is all set to ramp up its manufacturing capacity of super-critical boilers and super-critical turbine generators to 4000 mw per annum. The foundation stone for the upgraded facility was laid at Hazira on 19 March 2008 in presence of A M Naik, chairman and managing director, L&T, and Ichiro Fukue, representative director, Mitsubishi Heavy Industries.

L&T is the only private sector company in India to enter the space of super-critical boilers and steam turbine generators. The company will be manufacturing and marketing these critical components of the large power plant through two separate joint ventures with Mitsubishi Heavy Industries (MHI) of Japan. MHI is a global leader in this business.

L&T holds 51% in both the joint venutre with MHI holding 49 per cent. The joint ventures will have an investment of Rs 1500 crore. The joint venture had already started their operations in existing facilities at Hazira last year and have already constructed two new workshops. To further add capacities by 4000 mw, the new dedicated facilities coming up at Hazira marks a significant milestone in India's power sector.

Super-critical boilers and turbines are integral components of energy efficient, coal-based power plants. They will help meet the demand supply gap for power plant equipment as India ramps up its power generation capacity using the super-critical technology.

Manufacturing capability of these products integrates into L&T's existing strengths in the power sector. L&T is currently engaged in total EPC contracts for power projects as well as manufacture of complete condensing and feed heating systems and 'balance or plant' for power projects. With L&T also declaring its intent to enter the generation space as a developer of power projects, the company has developed capabilities for becoming a single point solution provider for the power sector.

L&T -MHI will have a product configuration catering to super-critical power plants, ranging between 500 mw-1000 mw. The engineering design centre for the boilers is based in Faridabad, near New Delhi, and that for steam turbines in Vadodara, Gujarat. The new fabrication and manufacturing facilities will be extension of present complex and will be state of the art world class set up.

The company made this announcement during the trading hours today, 19 March 2008.