L&T floats power generation firm

Engineering firm Larsen and Toubro (L&T) on Friday said it has floated a power generation arm called L&T Power Development and would invest Rs 20,000 crore (Rs 200 billion) in the new company.

"The overall investment in the company would be Rs 20,000 crore. L&T would invest Rs 5,000 crore (Rs 50 billion) and the rest would come through debt," L&T chairman and managing director A M Naik said. The new firm would generate 5,000 MW of power in the next five years.

In November, L&T entered into a joint venture agreement with Japan's Mitsubishi Heavy Industries for setting up a manufacturing unit in India for super-critical steam turbine and generator facility.

The JV would be investing about Rs 880 crore (Rs 8.80 billion) and would have a product configuration catering to plant capacities ranging between 500 MW and 1,000 MW.

L&T also has a joint venture with Japan's Toshiba to manufacture power plant equipment in India.