India: L&T bags Rs 6897-cr deal from Mahagenco.

Byline: shiv03

Larsen & Tourbo (L&T), the county s largest engineering and construction company, on Tuesday said it has got a boiler-turbine-generator contract worth Rs 6,897 crore from the Maharashtra State Power Generation Co (Mahagenco) for its forthcoming power project at Koradi near Nagpur. With the current contract, L&T s newly-formed subsidiary L&T Power s order book size has risen to Rs 16,000 crore in less than a year, managing director Ravi Uppal told ET.

The new entity, which was formed in January this year, is directly involved in engineering procurement and construction services and BTG supplies to private and state-run power companies. We are specifically focusing on thermal power projects based on supercritical technology for 660 MW and above. We have bid for a number of projects this year, which are likely to be cleared in the near future, said Mr Uppal. However, he declined to divulge the details.

L&T CFO YM Deosthalee told ET NOW, this paper s news channel, the company would take approximately four years for execution of the order, which is the largest in the power sector.

Mahagenco is building a coal-fired 1,980 MW power plant at Koradi, and is the largest contract won by L&T Power this year. ET had reported of this contract past month. Apart from this, the company had received EPC and BTG contracts worth Rs 4,000 crore from Jaypee Group s Jaypee Nigrie Super Thermal Power Project and a Rs 2,000-crore order from GMR Energy s Andhra Pradesh power project. However, on Tuesday, shares of L&T fell 2.65% to Rs 1525.60 on BSE, and plunged 8.4 % in the past one month from Rs 1,665.45.

L&T will design manufacture and commission supercritical boilers, steam turbine generators and supply balance-of-plant equipment and services, besides civil and architectural work for the power producers. With the government s thrust on adding nearly 78,000 MW by 2012, L&T geared for a major push into engineering and construction in the power sector, including thermal and nuclear.

It has entered into partnership with Mitsubishi for the manufacturing of supercritical boilers and steam turbine generators. It is building two plants for manufacturing supercritical technology-based boilers and turbines, and generators at Hazira. The plants are expected to be operational by 2010.

Analysts say L&T could get more orders as BHEL, which supplies about 70% of power equipment to power producers, is already overburdened with orders.

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