L&T inks agreement with CMI Energy to extend licence territory

MUMBAI: Engineering major Larsen & Toubro (L&T) today said it has signed agreement with CMI Energy for extension of its licence territory to manufacture and supply small heat recovery steam generators (HRSGs) to South East Asia and the Middle East.

"CMI Energy and its Indian licensee, L&T signed an agreement for extension of the latter's licence territory to manufacture and supply small HRSGs installed behind gas turbines below 80 MW to South East Asia and the Middle East," the company statement said.

L&T will have the exclusive rights to apply CMI technology in these markets for manufacturing and supplying single wide HRSGs installed behind gas turbines below 80 MW. These generators are used widely in combined cycle power plants and for cogeneration applications in process industry.

In 1991, CMI Energy awarded an exclusive license to L&T to design, manufacture and supply vertical HRSGs in India. This license was further extended in 2008 to include horizontal HRSGs.

"L&T and CMI Energy will jointly develop and improve the existing CMI design to suit the client requirements in the extended territory. This will allow CMI and L&T to improve their competitiveness in the regions," it said.

With the market for these generators poised to grow by 3.5 per cent every year over the next decade, CMI Energy and L&T intend to be key players in this market by attracting a minimum 10 per cent market share, the release said.