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Home arrow News arrow Power and Energy arrow L&T - MHI to supply Boilers, Turbines and Generators for JPVL' Power Project
L&T - MHI to supply Boilers, Turbines and Generators for JPVL' Power Project Print E-mail
Written by Ganesh   
Thursday, 13 August 2009
New Delhi: Jaypee Group has entered into an agreement with L&T-MHI Pvt. Ltd. (JV between L&T Ltd. And Mitsubishi heavy Industries Limited, Japan) for the  supply of super-critical Boiler, Turbines and Generator (BTG) packages, for the Jaypee Nigrie Super Thermal Power project being set up in the Singrauli District of Madhya Pradesh.

The approximate cost of BTG package which is Rs 4000 crores has been awarded through International Competitive Bidding (ICB). The expected time of commissioning for unit I and unit II are 45 months and 51 months respectively.

Jaiprakash Power Ventures Ltd (JPVL), the designated power vehicle of Jaypee Group and Larsen & Toubro (L&T) today signed an agreement for the supply and erection of the Boiler and Steam Turbine and Generator (STG) islands for the 2x660MW Jaypee Nigrie Super Thermal Power Project.

While, the contract for the Boiler Island has been given to L&T-MHI Boilers Pvt. Ltd. (LMBPL), the Steam Turbine Generator Island has been given to L&T. L&T will in turn source the equipment from its JV L&T-MHI Turbine Generators Pvt. Ltd. (LMTGPL). LMBPL and LMTGPL are both 51:49 joint ventures between L&T and Mitsubishi Heavy Industries of Japan, which is world’s leading producer of power equipment. Both the JVs have been signed for design and manufacturing of power equipment for use in supercritical power plants (which are superior to conventional sub-critical plants in terms of fuel efficiency and environment-friendliness).

In addition to investing around Rs 1700cr in these two JVs, L&T is also investing around Rs 1600cr in building manufacturing capabilities for other power plant equipment including critical piping, ESPs, coal pulverizes and heavy foundry. L&T also has a long standing JV with Sargent & Lundy of USA for engineering of Power Plants.

With this order, L&T has expanded its list of super-critical equipment supply orders, after having won the 2x800MW steam turbine generator order from the Andhra Pradesh Power Development Corporation.

"This is very prestigious project for the group, we will be investing Rs 8000 crore (Financial closure already achieved with ICICI Bank as lead financial institution) for setting up the thermal power plant and we will be adding 2,000 MW power generation capacity, comprising a mix of hydro and thermal, in the current five-year plan period ending 2012," said Manoj Gaur, Executive Chairman, Jaiprakash Associates Limited.

"Jaypee Group will be the only group in the private sector which will contribute 2,000 MW in the 11th five year plan to the nation. We intend to take our total capacity to over 13,470 MW with a mix of thermal and hydro in 60:40 in less than seven years from now," added Manoj Gaur.

Mr. Gaur further added, “We are determined to establish the power project with at least first unit ahead of schedule and given the track record of JAL including sourcing of quality equipments, the projects would epitomize high standards of quality, productivity & efficiency”.

L&T has identified power as major growth area and recently entered into the two JVs with MHI, one for Boilers and other for Turbine Generators with the objective to bring world-class technology to India.

A M Naik, Chairman & Managing Director, L&T said: "The large gap that exists between the demand for power in India and the installed capacity offers us a great business opportunity. We have expanded the scope of our capabilities in the power sector to offer our customers world class plants with attractive project completion schedules."

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