L&T signs power technology agreement with Mitsubishi
13 Nov 2006
Mumbai: Larsen & Toubro Ltd and Mitsubishi Heavy Industries Ltd (MHI) of Japan has signed an agreement with for transfer of technology to manufacture super critical boilers to meet the requirements of the mega power projects being planned for the country.
MHI has also expressed its keenness to take a JV stake in L&T's power business, the investment in which has been estimated at about Rs450 crore.
Under the agreement Mitsubishi Heavy Industries will grant an exclusive licence and transfer the know how and technical information to the power business unit including design, engineering, manufacture, testing, inspection, erection, installation, commissioning, operation, repair, services and retrofitting of super critical boilers including pulverisers.
According to L&T, the agreement is in keeping with its aim to emerge a comprehensive player in the power sector, as it plans to engage in the full spectrum from power project development, manufacture of power plant equipment and construction.
The 20-year licence would cover an output range from 300 MW to 1000 MW or nominal super critical coal-fired thermal power plants.
Use of supercritical parameters in large power plants results in decrease of turbine cycle heat rate thereby increasing the operating efficiency. This leads to reduced fuel consumption and helps in conservation of that depleting fuel resources. Supercritical parameter monitoring also helps in reducing emissions, especially of green house gases - a major environmental concern these days.
The MHI Group has a turnover around $25 billion through its manufacturing interests in power equipment, chemical and machinery plants, materials handling systems, transportation systems, waste treatment, steel structures, ships, machine tools,among others.
