L&T bags over Rs 15,000 crore NTPC order for thermal power plants

This is one of the biggest order wins for the company in the domestic market

Engineering conglomerate Larsen & Toubro (L&T) on Tuesday informed the exchanges that it has received a ‘limited notice to proceed’ (LNTP) from NTPC for setting up thermal power plants worth over Rs 15,000 crore.

 

L&T does not disclose the exact value of its order wins. However, analysts estimate it to be around Rs 22,000 crore.

 

According to people in the know, this is one of the biggest order wins for L&T in the domestic market, similar to a bullet-train package order that it won in 2020.

 

In its Tuesday statement, L&T said these power plants are being set up in Madhya Pradesh and Bihar.

 

In a separate statement to BSE, BHEL said it has won an order for 3x800 megawatt (Mw) Telangana Stage-II supercritical thermal power plant, the third plant in this bundle from NTPC.

 

L&T’s order pertains to the 2x800 Mw Stage-II thermal power plant at Gadarwara in Madhya Pradesh and 3x800 Mw Stage-II thermal power plant at Nabinagar, Bihar.

 

The order win also marks a change in L&T’s strategy, where the company earlier said it will not participate in bids for thermal power units.

 

In a media call in October, Subramanian Sarma, whole-time director & president (energy), L&T, said the change in strategy came after fruitful discussions over earlier stated unfavourable terms and conditions in the bidding process.

 

As of September, L&T’s total order book under execution was at Rs 5.1 trillion, with 40 per cent of it emerging from the international market, particularly West Asia.

 

In October 2020, L&T won an order to construct the 237.1 km stretch of MAHSR - C4 package, which is part of the Mumbai Ahmedabad High-Speed Rail Project.

 

Back then, L&T said this was the biggest engineering, procurement and construction (EPC) contract it won in India. The Tuesday project win is on similar lines in terms of value, said people in the know.  

Expansion mode 

> The power plants are being set up in Madhya Pradesh and Bihar

> The order win also marks a change in L&T’s strategy, where the company earlier said it would not participate in bids for thermal power units

> As of September, L&T’s total order book under execution was at Rs 5.1 trillion