Re-energise. That's a word Larsen & Tubro is taking very seriously, both literally and figuratively. L&T is looking to invest Rs. 60,000 crore to take its power generation business to the next level but that does not mean its other businesses will take a back seat.
It will invest this Rs. 60,000 crore in its power generation business over the next eight years to expand capacity. This move is vital, since its joint venture with Mitsubishi Heavy Industries for supercritical technology already has a Rs. 32,000 crore order book to produce 10,000 megawatts of power over the next two and a half years.
This is one of the first private sector power plants that manufactures supercritical boilers and turbine generators at Hazira. L&T has an annual capacity of 5,000 MW, which can be doubled to 10,000 MW in the future. L&T has already invested Rs. 4,000 crores in this plant. And with the increased capacity, it hopes to grow annual revenues from its power business six-fold.
L&T power sales is expected to be around USD 3 billion by 2012 from the current USD 400 million.
L&T will have a virtual independent company within one company for the time being with one balance sheet. This is to get autonomy in all functional aspects, with an empowered group the board composition of the verticals will be announced in the next few weeks and will be finally completed by March 2012.
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