L&T expects to bag large power plant contracts this fiscal

With 3,000-4,000-Mw worth thermal projects expected to be kicked off in various states during the current fiscal, engineering major Larsen & Toubro (L&T) expects to bag at least one-two large projects, a senior company official has said.

"We are very optimistic about the way things have now started to take shape from the government side. We expect 3,000-4,000-Mw worth projects to be bid out by various states this year," whole-time director for power, minerals & metals business Shailendra Roy told PTI.

He said the company is confident of bagging at least one or two large projects.

The company last week bagged a Rs 5,100-crore EPC order from the Madhya Pradesh state utility to set up a 1,320-Mw super critical thermal power plant.

"There is a potential of 6,000-8,000 Mw worth projects in states like Tamil Nadu, Maharashtra, Andhra, Bengal and Bihar among others. Also some projects of the state-run NTPC are likely to come up for bidding. Of these, we believe at least 3,000-4,000 mw projects will come up for bidding this year," he said.

The sluggish macroeconomic conditions and delays in clearances has impacted the power sector, he said.

"No new projects were bid out due to various policy hurdles. Even the private sector was not willing to invest in the sector. But now the government's situation has improved and the states are taking the initiative and we see some activity from the public sector as well," Roy said.

L&T's revenues from the power sector in the first quarter of the current fiscal declined 32% to Rs 980 crore from Rs 1,447 crore year-ago due to depleting orderbooks in an investment constrained economy.

He further said the company will also bid for ultra mega power projects as and when they would come up.

The country's largest engineering and construction major is currently executing multiple large EPC, boiler turbine generator and balance of plant power projects in the country as well as some abroad.

The company has established joint ventures with Mitsubishi Hitachi Power Systems of Japan for manufacture of supercritical boilers and turbines at its complex at Hazira in Gujarat.