The Hindu Business Line : L&T likely to leverage on Toshiba's nuclear power biz

L&T has been associated with the nuclear power programme and the engineering major has been supplying equipment, systems and services to Nuclear Power Corporation of India Ltd.

New Delhi March 9 Engineering major Larsen and Toubro Ltd (L&T) is likely to extend its ongoing talks with Japanese major Toshiba Corporation for a thermal power sector collaboration into the nuclear generation space as well.

The Indo-US civil nuclear deal is expected to open up investment opportunities in the domestic nuclear market and L&T is believed to be looking at leveraging on Toshiba's expertise in the nuclear power business in the future, industry sources said. An L&T spokesperson declined comment on the issue.

Toshiba had, in February last year, acquired US nuclear power plant maker Westinghouse for $5.4 billion to emerge as a global nuclear powerhouse in both the BWR (Boiling Water Reactor) and the PWR (Pressurised Water Reactor) segments. On the other hand, L&T has been associated with the Indian nuclear power programme and the engineering major has been supplying equipment, systems and services to Nuclear Power Corporation of India Ltd (NPCIL) for nearly all the nuclear power and associated plants that have been indigenously built.

These include manufacture of critical equipment, including reactor (calandria), end-shields, stem generators, primary heat transport system and heat exchangers. L&T is also assisting NPCIL in refurbishment works at existing stations.

Toshiba, following the Westinghouse acquisition, expects to ramp up its nuclear power business three-fold by 2015 in light of operational and technological synergies. Toshiba is a leader in BWR technology, with a strong presence in the Japanese market, while Westinghouse enjoys a leading position in the world market with its PWR nuclear systems and its nuclear fuel businesses.

Toshiba had said it was in talks with L&T to enter the coal-fired thermal power plant business in India, whereby the proposed venture would jointly produce and sell equipment for the plants.

According to sources, the proposed thermal venture, where L&T is likely to take a majority stake, could be bidding for new ultra mega power projects in the offing. The proposed consortium, which could involve more partners as well, mainly entails joint manufacture of steam turbines and power generators.

Ultra mega projects

L&T already has in place a technological collaboration with Mitsubishi Heavy Industries for manufacture of equipment for thermal power projects.

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