L&T to invest Rs 30k cr more in Orissa

Construction and engineering major Larsen and Toubro Ltd (L&T) plans to set up another power plant and a three-million-tonne steel plant in Orissa at a combined investment of Rs 30,000 crore.

The company had earlier, also planned a Rs 44,000-crore alumina and aluminium plant and a Rs 11,000-crore power project in Orissa. The new proposals have thus increased the company's total investment corpus in the state to Rs 84,000 crore. L&T's new 2,000-Mw power project, the company's second in the state, would also involve the association of the state government and an expenditure of about Rs 10,000 crore. L&T had earlier sought the approval to set up a 2,000 Mw power plant near Dhamra port. The project would require about 1,200 acres of land.

The company also plans to set up a three million-tonne steel plant and a captive power plant near Paradip, at a cost of about Rs 20,000 crore. It has already identified 600 acre of land and once a memorandum of understanding is signed with the Orissa government, the company would start work on the plant, Sailendra Roy, president, L&T, said on the sidelines of the Conclave Odisha investor summit today.

“We will invest about Rs 85,000 crore in the state for all these projects, of which, Rs 20,000 crore would be invested in the steel plant, Rs 21,000 crore in the two power plants and the rest will be spent on the aluminum project,” Roy said.

The company would soon start work on its aluminum project, the proposal for which, secured the approval of the state government last month.

L&T had signed an agreement with Dubai Aluminium Company Limited to set up an integrated bauxite mining, alumina refinery and aluminium smelter in the state. The project involved setting up of a three million-tonne alumina refinery in Rayagada district and an aluminium smelter plant at Sambalpur.