L&T may set up JV with Toshiba in power sector

Mumbai: Larsen & Toubro is in talks with Japan's Toshiba Corporation for setting up a joint venture in India to manufacture power plant equipment. L&T officials said the discussions with the Japanese company were at a preliminary stage and the proposal is to set up a facility for making turbines for power plants.

Reports indicated that L&T would hold majority stake in the joint venture, which will invest about $173 million to build plants for steam turbines and power generators.

A report quoting the Nikkei business daily said the joint venture aims to have an annual turnover of ¥20 billion in five years.

Toshiba, which has been expanding its power business, acquired the US nuclear power plant maker Westinghouse for $5.4 billion last year.

L&T''s entry into the power sector follows its recent tie-up with Mitsubshi Heavy Industries, another Japanese major, for manufacture of boilers for power projects. The joint venture - L&T Boilers Ltd - plans to invest Rs450 crore.