L&T plans mega entry into power generation

22 December 2007

Mumbai: Engineering and construction major Larsen and Toubro is making a big entry into the power sector, with installed generating capacity of 5,000 MW power planned over the next five years.

L&T had, in November, tied up with Japan's Mitsubishi Heavy industries, to make steam turbines and generators. For this the company is setting up a separate joint venture with an initial capital outlay of Rs800 crore. (See: L&T & Mitsubishi tie-up to make super-critical steam turbines, generators in India)

The company would invest around Rs5,000 crore over the next five years, A M Naik, chairman and managing director of L&T, said on the sidelines of a function organised to celebrate the birth centenary of L&T's co-founder Holck Larsen.

 Henning Holck-Larsen 
(4 July 1907 - 27 July 2003)

L&T, he said, has floated a new arm, L&T Power Development, to take up major power generation projects, mainly thermal power projects L&T Power Projects, a unit of L&T, also had a joint venture with Mitsubishi for making boilers.

L&T, meanwhile, is in talks with Japan's Toshiba Corporation for setting up a joint venture in India to manufacture power plant equipment. (See: L&T may set up JV with Toshiba in power sector)