L&T-MHI set to bag Rs 48,000-cr equipment order

KOLKATA: The L&T-Mitsubishi Heavy Industries JV is poised to land one of the biggest power equipment contracts pegged at nearly Rs 48,000-crore from the Union power ministry. The L&T-MHI duo will supply a string of supercritical grade boilers and turbine generators to power a host of thermal units in the 600 mw and 800 mw categories. These supercritical thermal units will make up the 12,000 mw proposed greenfield capacity addition by central generating stations.

L&T and MHI recently forged a 51:49 JV to manufacture supercritical grade boilers and turbines in the 600 mw and 800 mw ranges.

Confirming the development, Union minister of state for power Jairam Ramesh told ET: ���We���ve decided to award Rs 48,000-crore bulk contract to the L&T-MHI JV to supply boilers and turbines for a total 12,000 mw of additional greenfield capacity proposed by central generating stations. The contract will also enable the JV to acquire technologies for 600 mw and 800 mw boilers and turbines from MHI.��� The minister was in town to attend a DVC press meet on Friday.

Mr Ramesh said: ���The specifics of the units are yet to be decided, but an in-principal decision to offer bulk unit orders up to 12,000 mw has been taken jointly by the power and finance ministries on a negotiated basis.���

He added that ���the finance and power ministries have jointly decided to offer bulk orders to Indian companies or their joint ventures which require such orders in a bid to have technology for supercritical power equipment transferred to them from their foreign collaborators.��� These boiler-turbines contracts will power some 8-to-10 thermal units in the 600 mw and 800 mw categories.