The Hindu Business Line : L&T consortium bags Rs 1,400-cr order for VSP expansion

Mumbai March 15 Larsen & Toubro Ltd (L&T) and its consortium partner Paul Wurth Italia have bagged an EPC (Engineer-Procure-Construct) package, valued over Rs 1,400 crore, for the expansion of Vizag Steel Plant of Rashtriya Ispat Nigam Ltd (RINL).

In line with the National Steel Policy envisaging production of 110 million tonnes per annum (MTPA) of steel in the country by 2019-20, RINL has embarked upon a capacity expansion at Visakhapatnam. It had invited bids for installation of a new third blast furnace to double its capacity to 6.5 MTPA of hot metal from the present level of 3.2 MTPA.

Blast furnace

L&T will construct this blast furnace — a modern 3800 cu mt unit with a capacity of 2.5 mt of hot metal per year. This will be the second biggest blast furnace in the country. L&T's Construction Division, ECC, will execute this contract in consortium with Paul Wurth Italia within a timeframe of 30 months.

L&T's scope of work includes complete detailed engineering, apart from certain areas of basic engineering, based on the process engineering being supplied by Paul Wurth. The complete indigenous manufacturing and supply of equipment lies in the scope of L&T.

Site services

Apart from this, complete site services including the civil and structural works and erection of equipment will be undertaken by L&T, with specialised supervision provided by Paul Wurth. L&T's contract value in this project is around Rs 810 crore.

Paul Wurth Italia (the merged entity of Paul Wurth of Luxembourg and SMS Demag of Italy) is a world leader in iron making technology through the blast furnace route.

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