Jaypee Group, Larsen and Toubro tie up for thermal project (Lead)

August 12th, 2009 - 10:14 pm ICT by IANS  

New Delhi, Aug 12 (IANS) Engineering and construction major Larsen and Toubro (L&T) will supply and erect boiler and steam turbines for a 1,320-MW thermal power project that Jaiprakash Power is setting up in Madhya Pradesh.
The two companies Wednesday signed an agreement in this regard.

According to the Rs.4,000-crore agreement, L&T-MHI Ltd, a joint venture between L&T and Japan’s Mitsubishi Heavy Industries, will supply boiler to the thermal project coming up in Singrauli, while steam turbine will be supplied by L&T alone.

The project at Singrauli district in Mahdya Pradesh comprises two 660-MW super-critical thermal power units.

The first unit is expected to be commissioned in 45 months and the second in 51 months.

The contract was awarded to L&T through international competitive bidding, the companies said in a joint statement.

“This is a very prestigious project for the group, we will be investing Rs.8,000 crore for setting up the thermal power plant and we will be adding 2,000 MW power generation capacity during the current five-year plan period ending 2012,” said Manoj Gaur, executive chairman of Jaiprakash Associates.

With this project, L&T has expanded its list of super-critical equipment supply orders. It earlier won a 1,600-MW steam turbine generator order from Andhra Pradesh Power Development Corp.

“The large gap that exists between the demand for power in India and the installed capacity offers us a great business opportunity,” L&T chairman and managing director said A.M. Naik said.

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