Larsen & Toubro plans to have a power generation capacity of 5,000 mw by 2015. All the capacity will be coal-based and would come up at a cost of Rs 30,000 crore. Further these projects would have a debt-equity ratio of 80:20.

 

L&T bagged its first power generation project worth about Rs 9,000 crore at Rajpura in Punjab in November. It has invested about Rs 500 crore in land acquisition so far for the 1,320 mw project. The project is expected to achieve closure by the middle of the year and the first unit would be commissioned by January 14.

 

Also, the company last week signed a memorandum of understanding with Karnataka Power Corporation (KPCL) to set up a 1,600 mw plant in Chhattisgarh. It has also identified locations for a 1,600 mw plant in Orissa. The company is also looking at setting up plants in Jharkhand, Maharashtra and Gujarat.

 

The coal linkage for the Rajpura project has been done. It has just applied for coal linkage for the Chattisgarh project. The company is also looking to participate in auctions for coal blocks and acquire coal mines abroad.

 

The company would source boiler turbine & generator (BTG) from its joint venture with Mitsubishi Heavy Industries and the engineering, procurement & construction (EPC) of the projects would be done internally. Going forward L&T is prepared to bid for transmission projects and, after 2017, venture into distribution.

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