L&T Wins Rs 6,500 cr Mega Power Plant Order from Jaiprakash Group

Jaiprakash Power Ventures Ltd. (JPVL), a Jaiprakash Group Power Company, placed yet another large order on Larsen & Toubro (L&T) for the supply, erection and commissioning of Boiler-Turbine Generator package, Critical Piping, Electrostatic Precipitators (ESPs), and Power Plant Automation for their 3x660 MW Power Plant being set up in Uttar Pradesh. The value of contract is around INR 6500 crores, and will be fully commissioned in 60 months, with the first unit scheduled to go into commercial production in 48 months.

This power project of 1980 MW capacity, based on supercritical technology, will be located in Karchana Dist. 40 km from Allahabad, U.P., and will comprise three units of 660 MW each.

Supercritical plant and equipment are being increasingly preferred by utilities for their higher efficiencies and for environmental friendly thermal power generation.

While the contract for the Boiler Island has been given to L&T-MHI Boilers Pvt. Ltd, the contract for another package comprising the Steam Turbine Generator Island, ESPs, Critical Piping and Power Plant Automation system has been awarded to L&T. L&T will procure the Turbine Generator equipment from L&T-MHI Turbine Generators Pvt. Ltd., a joint venture between L&T and MHI/Melco of Japan.

The new contract for L&T is the second similar order from this leading IPP that is a part of the diversified Jaiprakash Industries infrastructure conglomerate that has already established a significant presence in Engineering & Construction, with interests in power, cement, hospitality, real estate, expressways and education.

The first order, from the same client (JPVL) comprising two supercritical units of 660 MW each and located in Singrauli District of Madhya Pradesh was placed on L&T in August last year, and is set to be commissioned in 2013.

L&T has geared up for a major thrust into the power sector – both thermal and nuclear. A slew of recent initiatives have served to integrate and augment its capabilities. It set up a wholly owned subsidiary – L&T Power Limited which brings together all its offerings in the thermal power segment. The joint venture companies set up in partnership with Mitsubishi Heavy Industries Ltd. (MHI) - Japan for the manufacture of supercritical boilers and steam turbine generators have already commenced production at Hazira works in Gujarat. This development adds to the Company’s existing strengths in design engineering, project execution and construction. L&T’s EPC capability extends to building single units of up to 1000 MW for supercritical coal-based power projects.

L&T is also setting up manufacturing facilities for other critical equipment such as air preheaters and fans, and heavy forgings. This will enhance indigenous availability of components and spares, and will contribute to increased availability of the power utility sets.

Background:
Larsen & Toubro is a USD 9.8 billion technology, engineering and construction group, with global operations. It is one of the largest and most respected companies in India’s private sector.

A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business over seven decades.