Gerard wrote:Larsen & Toubro flexes its engineering might
L&T to add 4000 MW per annum capacity for Super-critical Boilers, Steam Turbine Generators
Larsen & Toubro Ltd (L&T) has announced that the Company is all set to ramp up its manufacturing capacity of super-critical boilers and super-critical turbine generators to 4000 mw per annum. The foundation stone for the upgraded facility was laid at Hazira on March 19, 2008 in presence of Mr. A M Naik, Chairman and Managing Director, L&T, and Mr. Ichiro Fukue, Representative Director, Mitsubishi Heavy Industries Ltd.
L&T is the only private sector Company in India to enter the space of super-critical boilers and steam turbine generators. The Company will be manufacturing and marketing these critical components of the large power plant through two separate joint ventures with Mitsubishi Heavy Industries (MHI) of Japan. MHI is a global leader in this business.
L&T holds 51 per cent in both the JVs with MHI holding 49 per cent. The JVs will have an investment of Rs 1500 crore.
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The projectâ€™s cost has been estimated at Rs 3,060 crore with the equity component being put at Rs 1,100 crore. The Tamil Nadu Industrial Development Corporation, a State Government industrial promotion agency, will hold a 3 per cent equity stake in the venture.
The process of earmarking the 1,200 acres of land for the project is on and once that is finished construction work will start, according to the sources. The project is expected to take 24 months for completion.
L&T plans to build large-sized ships, including very large crude carriers (250,000 tonnes and more) at the shipbuilding yard. It is expected that the company will also make vessels for defence purposes.
With the Tamil Nadu Government deciding to allot the land for the project at market rate, the cost of the land alone will be about Rs 250 crore, according to reliable sources. L&T also plans to develop a high-class component base near the shipbuilding yard, as the ship building activity picks up.
The company has a ship building facility at Hazira in Gujarat and was looking to construct a greenfield facility since it could not expand at Hazira and also because the ship building business was booming.
The Tamil Nadu Government announced in August 2007 a minor ports policy, which was meant to facilitate the integrated ship building yard-cum-port project. Under the policy, the Government said captive ports could handle commercial cargo, thereby improving the economic viability of such a project.