L&T to set up power equipment manufacturing plant in Hazira

MUMBAI: Larsen & Toubro on Monday said it has zeroed in on Hazira, Gujarat, to set up its Rs 1,500-crore power equipment manufacturing plant.

The engineering major would make turbines and boilers at the Hazira plant, L&T CMD AM Naik told reporters. For this purpose, it has floated two companies, L&T Turbines and L&T Boilers.

Last year, L&T has signed a joint venture agreement with Japan's Mitsubishi Heavy Industries for setting up a manufacturing facility for super-critical boilers, super steam turbine and generator. "This evening, I will get the approval for the site from the Gujarat government," Naik told reporters.

The plant would have a capacity of 2,000-3,000 MW a year. It is expected to be commissioned 24 months from now. The agreement follows the technology licensing and technical assistance agreement for manufacturing of super- critical turbine and generator, signed between L&T, Mitsubishi Heavy Industries and Mitsubishi Electric Corporation.

The product, an integral component of energy efficient coal-based power plants is expected to meet the demand-supply gap.

Mitsubishi Heavy Industries, a global heavy machinery manufacturers, with consolidated sales of $25 billion. Supercritical turbine uses higher steam temperatures and pressures than sub-critical pressure power generation and are more fuel-efficient and environment-friendly.