Mumbai: Larsen & Toubro (L&T) has bagged 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 ultrasupercritical 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 und ..
“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.
Analysts believe that while this big order may not be an indication of recovery in power sector, L&T would be a main beneficiary of the government's focus on infrastructureNSE -0.65 % sector and public sector capex.
"We expect infra capex to revive from H2FY20. This would aid L&T to achieve its guidance of around 10-12 per cent order inflow growth. In addition oil & gas capex in Middle East countries, and India should provide impetus to orderbook and earnings growth. With th ..
Given the lack of activity in coalbased power generation sector due to poor financial health of companies and other challenges faced by the beleaguered sector, L&T has found new business opportunity in retrofitting of old plants with emission control equipment (FGD and SCR), but the average ticket size of orders is smaller at Rs 800 crore-Rs 1,000 crore.
“In the past five years, we have hardly had manufacturing sector contributing to the GDP. If industrial growth has to happen, powe ..
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