Engineering and construction major Larsen and Toubro’s (L&T) subsidiary L&T Power plans to outsource equipment manufacturing activities to meet rising demand for power equipment from power companies. “We plan to increase outsourcing of components and equipment needed for our supercritical steam boiler, turbine -generator facility at Hazira,” said L&T Power managing director and CEO Ravi Uppal.
It will reduce the cost of expansion of the Hazira by about US$100million. The company plans to expand its equipment manufacturing facilities from 4000 mw to 6000 mw. The company commissioned the 4000-mw facility for supercritical (main power equipment or BTG package) equipment manufacturing at Hazira.
The unprecedented demand coming from new power projects has already swelled the order book size of L&T Power to 6500MW of equipment. Approx value US$ 5.5billion.
L&T Power has two joint ventures with Japanese company — L&T MHI (Mitsubishi Heavy Industries) Boilers and L&T-MHI Turbine Generators — that is implementing the supercritical equipment facility at Hazira. MHI has initiated a comprehensive program on vendor development by bringing all its suppliers from Japan to set up shop near the existing manufacturing facility.
Indian government is banking heavily on L&T to come to the rescue of power projects in the country that have faced delays in the past due lower domestic manufacturing ability of equipment.
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