L&T signs pact with GE Hitachi for nuclear plants

May 19th, 2009 - 7:02 pm ICT by IANS  

Mumbai, May 19 (IANS) Diversified conglomerate Larsen and Toubro (L&T) has signed a pact with the US-based GE Hitachi Nuclear Energy to build boiling water reactors for nuclear power plants, the company said Tuesday.
L&T had earlier signed similar pacts with Westinghouse Electric of the US, Atomic Energy of Canada and Atomstroyexport of Russia.

“L&T has been playing a leading role in equipment manufacture, construction and project management for pressurised heavy water reactors in India’s domestic programme,” the company said in a regulatory filing.

The two companies hope to utilise indigenous capabilities for constructing nuclear power plants, including reactor equipment and systems, saying they were optimistic about India’s “emerging nuclear renaissance”.

The tie-up with GE Hitachi follows a series of similar deals signed with a clutch of overseas companies after India and the US inked an agreement on cooperation in the field of civilian nuclear power.

In mid-January, L&T announced a pact with Westinghouse Electric of the US to build nuclear power reactors, saying it would enable the two companies “utilise indigenous capabilities for the turnkey construction of nuclear power plants including supply of reactor equipment and systems”.

Westinghouse technology is in use in over 40 percent of operating nuclear power plants globally, an L&T statement had added. A Toshiba Corp group company, the US firm supplies nuclear plant products and technologies to utilities across the world.

A week later, L&T signed another pact - with Atomic Energy of Canada Ltd (AECL) - though the pact is subject to final approval of a bilateral nuclear cooperation agreement between the governments of India and Canada.

In March, L&T bagged a Rs.345-crore ($67.5-million) order from the Nuclear Power Corp of India (NPCI) for supply of four steam generators.

The steam generators are critical and long lead equipment which will be supplied to the Kakrapar Atomic Power Project-3 and 4.

In April, it signed another pact with Russian nuclear energy major Atomstroyexport to design and develop reactors for the Indian market, including four at Kudankulam in Tamil Nadu.

The L&T stock closed Tuesday at Rs.1,346.25, up 8.82 percent over Monday’s close. The stock hit an intra-day high of Rs.1,469.75 and low of Rs.1,270.

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