L&T partners with SA co for power generation

Larsen & Toubro Ltd (L&T), India’s leading engineering, technology and construction company and Befula Investments (PTY) Ltd, South Africa, have signed a shareholders agreement to incorporate a joint venture company Larsen & Toubro T&D SA (PTY) Ltd, in South Africa to capitalise on the power transmission and distribution opportunity there.

With the installed capacity close to 44000 MW South Africa is facing a severe peaking demand shortage in electricity.

The current peak demand shortage is approximately 3000 MW and this is expected to grow 6 per cent every year.

Thus there is a long felt necessity of huge generation capacity additions. Sizeable investments are lined up by the government to cater to major generation capacity addition in augmentation of transmission and distribution network in the next five years.

The transmission lines are expected to be in 400 / 765 kV class to service the major load centres and strengthen the national grid for balancing of power and to minimise instances of shut downs.

Recognising this opportunity and to exploit the business potential existing in the country, L&T has signed the share holders agreement with Befula Investments (PTY) Ltd - a leading general engineering and investment company located in Durban having core strengths in general engineering with structural and plate fabrication, tank manufacture including cranes and material handling equipment.

Befula Investments with its associate partners have a wide network access to resource pools for labour and services across multiple sectors including labour sourcing, site location of labour, logistics and supply chain management support.