To manufacture equipment for mega power projects
The companieswill together invest Rs 450 crore in the venture, currently registered as L&T Boilers.
There arefew Indian companies in this space, the notable player being BHEL.
Mumbai, Nov. 13
Larsen & Toubro has entered into a technological collaboration with Mitsubishi Heavy Industries for manufacture of equipment for mega power projects being planned in the country.A joint venture with Mitsubishi resulting from this alliance is definitely on the cards, said Mr K. Venkataramanan, Wholetime Director and President, Engineering & Construction, at L&T. The companies will together invest Rs 450 crore in the venture, currently registered as L&T Boilers Ltd, he said.
Under the agreement, the Japanese company will transfer technology to L&T for manufacture of supercritical boilers that can meet the requirements of the domestic mega power projects being planned.
Currently, there are few Indian companies in this space, the notable player being Bharat Heavy Electricals Ltd, said infrastructure analysts.
L&T has expressed interest in bidding for two ultra mega power projects, those at Sasan in Madhya Pradesh and Mundra in Gujarat. The company is likely to pursue other mega power projects as well. The technology from Mitsubishi would also be used for L&T's work for National Thermal Power Corporation, he said.
L&T's facility under this venture will either be located at its existing facility at Hazira or at a location more suited to service the destination power plants of its customers, said Mr Venkataraman.
Mitsubishi will grant an exclusive licence and transfer the know-how and technical information to the Power Business Unit of L&T. The areas covered under this agreement include design, engineering, manufacture, testing, inspection, erection, installation, commissioning, operation, repair, services and retrofitting of super critical boilers, including pulverisers. The licence that is for a period of 20 years would cover output range from 300 MW to 1,000 MW for nominal super critical coal fired thermal power plants.
The use of supercritical parameters in large power plants leads to increase in operating efficiency. It also means reduced fuel consumption, said a statement from L&T.