L&T Secures Order for Power Project worth Rs 7,000 Crores

Larsen & Toubro (L&T) has announced that it has secured a turnkey contract for building a power generation project worth over Rs 7,000 crore after a dry spell of three years.

The company will do engineering, procurement and construction (EPC) for the 1,320 mw ultra-supercritical power plant in Buxar district in Bihar, for SJVN Thermal Private. This order, among the biggest the company has received for a power generation project, would help its power equipment business which has been reeling under pressure due to the lack of orders in the sector.

“This is one of the biggest orders we have received for power EPC, our first order in three years. We have been bagging jobs for flue-gas desulphurisation (FGD) units that has kept the order book going at a time when there are no orders for power generation projects in the sector,” Shailendra Roy, chief executive officer, L&T Power, told ET.

With this order, L&T’s power generation projects business has an order book of Rs 18,000 crore, he said.

Analysts consider that while this big order may not be a sign of recovery in power sector, L&T would be a main recipient of the government's focus on infrastructure sector and public sector capex.