L&T inks MoU with US firm for nuclear plant

Engineering and construction major Larsen & Toubro (L&T) has signed a memorandum of understanding (MoU) with the US-based Westinghouse Electric Company, the largest nuclear power equipment maker, to build 1,000 megawatt pressurized nuclear power plants in India.

L&T will be responsible for construction and fabrication of structural, piping and equipment modules for the Westinghouse AP 1000 model modern day light water reactors for the Indian market. Westinghouse will provide design, engineering and procurement of major components.

Westinghouse Electric Company, part of Toshiba Corporation, is the leading nuclear equipment maker with over 40 per cent of the world's nuclear operting nuclear plants, including 60 per cent of the nuclear plants operating in the US. L&T has been associated with the construction of all the indigenous nuclear power plants in India.

L&T, a predominantly engineering major with over $7 billion revenues, has a Rs 880 crore joint venture with Mitsubishi of Japan to make thermal power equipments.

"This MoU covers manufacturing of all critical components related to advanced 1000 Mw pressurized water reactors (PWR) such as modular construction, reactor island, piping and valves for the Westinghouse reactors which will come up in India," said M V Kotwal, director of L&T.

However, he said the MoU was signed with a long term view as India aims to add to its installed nuclear capacity 30,000 Mw by 2020 and more than 60,000 Mw by 2030.

"The addition will span many years and revenues will depend on how the orders are placed and how the policies evolve in the coming years," he said.

Meena Mutyala, vice president, India strategy of Westinghouse said the company has already received orders for four AP 1000 PHWR reactors, which use natural uranium as fuel, from China.

L&T has a track record of making a 500 Mw reactor end shields, steam generators and reactor safety vessel for the fast breeder reactor coming up Kalpakkam. The MoU will pave for gaining expertise in PWR technologies. L&T'S manufacturing centres at Powai, Hazira and Coimbatore will be used for making the critical components, said Kotwal.