L&T gets BoD nod for Rs 300 cr boiler plant

MUMBAI: Engineering major Larsen and Toubro Limited (L&T) on Wednesday said it will invest Rs 300 crore for manufacturing of super-critical boilers needed for 800 MW power generators.

"On Tuesday, the board approved investment of Rs 300 crore for setting up a unit to produce super critical boilers in collaboration with Mitsubishi Heavy Industries Ltd (MHI)," L&T Chairman and Managing Director A M Naik said here.

India manufactures boilers for thermal power plants generating up to 500 MW. For erection of power generators beyond 500 MW, super critical boilers are required. Currently only BHEL has the technology to manufacture super critical boilers for 600 and 800 MW power generators.

This announcement follows the technology transfer and license agreement signed recently by L&T and MHI.

"This agreement has given birth to a new company called L&T Power Project Limited. Through this, we are starting a new plant for boiler and turbine," Naik said.

Site for the project would be either in Gujarat or Tamil Nadu. The formal announcement would be made either by July-end or early August.

Super-critical boilers, an integral component of energy efficient, coal-based power plants, will help meet the demand-supply gap for power plant equipment as India ramps up its power generation capability using super-critical technology.