L&T eyes Rs6,000 crore revenue from nuclear equipment
11 Sep 2009
Keen to get involved in the emerging nuclear power sector, Larsen & Toubro has teamed with four major global nuclear power equipment vendors, and aims to earn annual revenue of Rs4,000-6,000 crore from the business once India's ambitious 60,000 mw nuclear capacity addition plan is launched.
The company plans to become a major exporter of nuclear power equipment, including forgings and reactors, while emerging as one of the most integrated makers in the business, K V Kotwal, whole-time L&T director and senior executive vice president, heavy engineering, told Business Standard.
Kotwal said L&T had asked the government to give domestic companies a greater role in the civil nuclear programme. ''We expect the Indian government to start placing orders with vendors in the next 12-18 months,'' he added.
Over the past six months, L&T has signed cooperation agreements with four of the world's top five advanced reactor makers - GE Hitachi of the US; Atomstroyexport (ASE), part of Rosatom of Russia; Toshiba Westinghouse of the US; and Atomic Energy of Canada. The company will undertake construction of nuclear power plants, including supply of reactor equipment and systems, valves, electrical and instrumentation products.
Its nuclear equipment forging shop coming up at Hazira in Gujarat at an investment of Rs1,500 crore will be ready by 2011, he said. ''At Hazira, we will be able to manufacture 200-250 tonne big forgings initially and our ultimate aim is to make full nuclear reactors and emerge as a global player,'' Kotwal said.
Meanwhile in a press release, L&T said it has won nuclear power plant equipment orders worth Rs405 crore in the last one week. The orders include a contract for four generators for pressurised heavy water reactors, and another technology development contract for a fast breeder reactor.
The release said L&T has bagged a repeat order for design, manufacture and supply of four steam generators for 700 MWe PHWRs for the 7th and 8th units of the Rajasthan Atomic Power Plant from the Nuclear Power Corporation of India Ltd. These will be the largest steam generators built in India so far, it said.
The company also won a 'technology development' order from the Department of Atomic Energy for welded grid plate for the core assembly of a fast breeder reactor, which is part of the next stage of India's nuclear power programme.
