Jaypee Group, L&T in pact for MP super thermal project

Hyderabad: In first of its kind private sector order for super-critical technology boilers in the country to non Chinese suppliers, the $8.5-billion Larsen & Toubro will supply boiler-steam turbine-generators (STG) islands for the 2x660 MW Jaypee Nigrie super thermal power project, being constructed by Jaiprakash Power Ventures Ltd (JPVL) in  the Singrauli district of Madhya Pradesh.

JPVL, the designated power vehicle of the diversified infrastructure conglomerate Jaypee Group and L&T-MHI Pvt. Ltd. (a joint venture between L&T Ltd. and Mitsubishi heavy Industries Limited) today entered into an agreement for the supply of super-critical, environmental friendly, energy efficient boiler, turbines and generator (BTG) packages for the super thermal power project comprising 2 X 660 MW super-critical unit.

While the contract for the boiler island has been given to L&T-MHI Boilers Pvt. Ltd. (LMBPL), the steam turbine generator island has been given to L&T, the combined order value for which is Rs4,000 crore. With this order, L&T has expanded its list of super-critical equipment supply orders, after having won the 2x800MW steam turbine generator order from the Andhra Pradesh Power Development Corporation (See: L&T wins NTPC contract among four orders in Andhra Pradesh).

L&T will, in turn, source the equipment from its JV L&T-MHI Turbine Generators Pvt. Ltd. (LMTGPL). LMBPL and LMTGPL are both 51:49 joint ventures between L&T and Mitsubishi Heavy Industries of Japan, the world's leading producer of power equipment. (See: L&T & Mitsubishi tie-up to make super-critical steam turbines).generators in India. 

In a statement, Manoj Gaur, executive chairman, Jaiprakash Associates Limited, said, ''...we will be investing Rs8,000 crore (financial closure already achieved with ICICI Bank as lead financial institution) for setting up the thermal power plant and we will be adding 2,000 MW power generation capacity, comprising a mix of hydro and thermal, in the current five-year plan period ending 2012.

With this project, Jaypee Group will become the only private sector company to add 2,000 MW in the 11th five year plan.
 
"We intend to take our total capacity to over 13,470 MW with a mix of thermal and hydro in 60:40 in less than seven years from now," Gaur disclosed. "As a group it has always been our endeavor to not only add capacities to our power generation but also to give the best of return on equity to our shareholders, our 300 MW Baspa II hydro-electric project (HEP) in Himachal Pradesh and 400 MW Vishnuprayag HEP in Uttarakhand are already delivering 31per cent-35 per cent ROE,'' he added.