L&T bags Rs 6,897-cr order from Mahagenco

One of the largest contracts for thermal power.

Larsen & Toubro Ltd (L&T) has bagged a Rs 6,897-crore contract from Maharashtra State Power Generation Co Ltd (Mahagenco) for three 660 Mw super-critical Boiler Turbine Generator (BTG) units.

The project is one of the largest engineering, procurement and construction (EPC) orders for thermal power stations in the country. The project, for the 1,980 Mw thermal power plant at Koradi near Nagpur, was won after stiff competition from domestic and international power majors, said L&T.

“We will deliver the first machine for Mahagenco within 51 months and the next in another six months,” said Ravi Uppal, MD & CEO, L&T Power.

Public sector power equipment maker BHEL, which is sitting on an order book of Rs 1,25,900 crore, is into manufacturing of sub-critical equipment, that is less than 600 Mw. Due to a heavy backlog, BHEL is struggling with its delivery schedules. The company is expanding its capacity to 20,000 Mw by 2012.

Supercritical pressure coal-fired power generation uses higher steam temperatures and pressures than sub-critical pressure power generation, and is more fuel-efficient and environment-friendly. India plans to add 78,700 Mw of power in the Eleventh Five-Year Plan and another 100,000 Mw within five years to meet its energy demands.

This is the third equipment order for L&T Power, the joint venture floated by L&T and Mitsubishi Heavy Industries of Japan in November 2007 to manufacture BTGs in India. Earlier, the company had won a 2x800 Mw order worth Rs 1,557 crore from Andhra Pradesh Power Development Company Ltd (APPDCL) and a Rs 4,000-crore order from Jaypee Industries for 2x660 Mw supercritical equipment.

Ravi Uppal said the company was ready to deliver its first machines to APPDCL. The company hopes to bag new orders soon, especially from National Thermal Power Corporation.

State-run NTPC is planning to float a bulk tender order for securing equipment for five 800 Mw units worth Rs 25,000 crore before March 2010 for its proposed power projects across Bihar, Uttar Pradesh, Maharashtra and Jharkhand.

Ravi Uppal said L&T Power had the capacity to manufacture 4,000 Mw or six machines of 660 Mw in a year. “Once we are full with this capacity, we may further expand,” he said.

L&T’s foray into power generation and nuclear sectors will be through separate standalone subsidiaries. L&T Power will execute the EPC work for power projects. “We are assessing options in power generation and are bidding for two-three upcoming power projects,” Uppal said.

Under the total EPC contract for the Mahagenco project, L&T’s work includes design, engineering, manufacture, supply, erection and commissioning of super-critical boilers, Steam Turbine Generators and associated auxiliaries, besides a substantial balance of plant equipment and services.