L&T, NPCIL ink Rs 1,725-cr JV to roll out spl forgings, steel

The Nuclear Power Corporation of India Limited (NPCIL) and Larsen & Toubro (L&T) today signed a joint venture agreement to make special steel and ultra-heavy forgings at a plant in Hazira (near Surat) for an investment of Rs 1,725 crore.

"L&T will have 74 per cent stake in the venture, while NPCIL will hold the remaining stake. The company will have one-lakh tonne per annum steel and 40,000 tonne per annum forgings making capacity," L&T chairman & managing director AM Naik told reporters here.

Naik said the joint venture will be set up on a 100-acre land in Hazira and the total investment of Rs 1,725 crore will be funded on a 3:1 debt-equity ratio.

"The plant will start manufacturing from April 2011. It will meet indigenous demand across nuclear and thermal power and hydrocarbon sectors in the short-term. However, there is a plan to start exporting from 2013," he added.

Forging is a crucial component in the construction of nuclear reactors.

NPCIL, the sole nuclear power generator in the country, has a total capacity of 4,120 MW. This is expected to go up to 6,780 MW by 2011 once its ongoing projects become operational. The government hopes to generate 60,000 MW nuclear power by 2032.