A branch of Larsen and Turbo, L&T Power Development Company is planning to set up power projects all over India. This coal based projects will have a combined capacity of 5,000 MW and will be ready by the year 2015.
The Head (Power Business) and Senior Executive Vice-President of L & T, Mr. A. K. Chhatwani told the media, “there is a huge space in the power generation field in India and we are low in per capita consumption of power at a mere 700 kW/hour against 2,600 kW/hour in China. The power deficit in India is likely to continue till 2022 and so we decided to enter the field.”
The company plans to commission several 5,000 MW project in the next 5 years. “By then we will have achieved financial closure for another 5,000 MW. Our intention now is to focus on coal-based projects but we will consider gas and LNG based projects in future.”
The current plan includes three power plants of approximately 1,600 MW in capacity by 2015. Out of these three, one 1320 MW capacity plant will be set up in Rajpura, Punjab while a 1600 MW plant will be in Chhattisgarh. The location for the third plant is not announced yet. The plant in Rajpura will be ready by January 2014. The completion deadline for the other two plants is March 2015.
Chhatwani said, “Part of the land and water requirements for Rajpura is already in our possession. The coal will be sourced from the South Eastern Coal mines in Chhattisgarh. A 5,000-MW plant needs 25 million tons of coal.”
The Chhattisgarh plant is being made for the Karnataka government. L & T has come to an agreement with Karnataka Government over this plant. According to the agreement, half of the power produced in the Chhattisgarh plant would go to Karnataka and 5% of the remaining will be given to Chhattisgarh. The rest of the produced power would be sold to different buyers.
Mr. R. Shankar Raman, the L&T Senior Vice-President said that in order to create an extra capacity of 5,000 MW in the country, we will have to raise Rs.30,000 crore. This money will be funded on debt-equity ratio basis, which is 80:20 in this case. Thus, the plant will have a debt of Rs.24,000 crore on it.
Rs. 500 crore has already been spent on land for the plant in Rajpura plant. This project alone needs Rs.10,000-crore and it will have an equity of Rs.2,000 crore.
Mr. Raman added, “We will achieve financial closure by the middle of the year because we need to deliver the project by January 2014.”
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hi,i am a student of final year mechanical branch,i have been placed in L&T POWER(package:3.35) and SMS SIEMAG(package:4.5).
can anybody suggest me where should i join.
thanks….:)…