The new project will help improve L&T’s capacity utilisation, but the company’s orders from the private sector continue to remain muted.
Larsen & Toubro (L&T) said on Monday it has won a project for constructing a power plant in Bihar. The project is estimated to be worth more than Rs 7000 crore.
“The power business of Larsen & Toubro has bagged a mega EPC (engineering, procurement and construction) order from SJVN Thermal Private to set up a 2×660 MW ultra-supercritical power plant in Buxar district, Bihar,” the company said in a statement to the exchanges.
SJVN Thermal is a wholly-owned subsidiary of SJVN, a joint venture of the central and Himachal Pradesh governments. The exact value of the order is unknown as the company has stopped disclosing the value of its order wins.
L&T said he scope of work includes design, engineering, manufacture, procurement, supply, construction, erection, testing and commissioning the project on turnkey basis. Prime Minister Narendra Modi laid the foundation stone of the plant in March this year.
“Knowing the importance of this project for the state of Bihar, L&T shall aim to set new benchmarks in completion schedule, quality, safety and equipment/system performance,” said Shailendra Roy, chief executive officer and managing director for L&T Power and whole-time director for L&T.
L&T’S power segment has been struggling for the lack of orders in the last few years. The new project will help improve L&T’s capacity utilisation, but the company’s orders from the private sector continue to remain muted. Overall, as of March 2019, L&T had an order book of Rs 2.93 trillion.
About Larsen and
Founders: Henning Holck-Larsen, Søren Kristian Toubro