New Delhi: Larsen & Toubro Ltd (L&T) on Wednesday signed a Rs 4,000-crore agreement to supply power equipment to Jaiprakash Power Ventures (JPVL), a unit of Jaiprakash Associates Ltd.

L&T will source the super critical units boiler and steam turbine generator for the 1,320 MW thermal power project of JPVL coming up in Nigrie, Madhya Pradesh, from its joint ventures with Mitsubishi Heavy Industries (MHI).

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Jaiprakash Associates’ Executive Chairman, Manoj Gaur, told presspersons that the company would make a total investment of around Rs 8,000 crore on the plant. “Financial closure for the Singrauli plant has been achieved. It has been funded in 70:30 debt-equity ratio. We have raised Rs 5,000 crore in term loans from banks,” said Gaur.

Second major order

According to the agreement, the order for the supply of super-critical boilers will be executed by L&T – MHI Boilers Pvt Ltd. The steam turbine generator would be sourced from L&T-MHI Turbine Generators Pvt Ltd. L&T has 51 per cent stake in both joint ventures.

The L&T-MHI combine bagged the order through international competitive bidding.

This was the L&T-Mitsubishi combine’s second major order, after the Rs 1,557-crore order for super critical steam turbine and generator from Andhra Pradesh Power Generation Corporation Ltd for the 1,600 MW Krishnapatnam project bagged in July last year.

Steam turbines based on super-critical parameters use less energy and generate higher pressure for greater efficiency as compared with traditional sub-critical units. This technology’s higher steam temperatures and pressure parameters lead to improved power generation from the same quantity of coal, besides reducing environmental pollution.

On the basis of India’s weighted average operating station heat rate, generation efficiency of sub-critical technology coal-based power plants was estimated to be 30.05 per cent. With the implementation of the super-critical technology, operational efficiencies of the projects will be higher, at around 40 per cent.

“By the end of the current Five-Year Plan, we plan to add 2000 MW of power capacity, as a mix of hydro and thermal,” said Gaur. According to Suren Jain, Managing Director, JVPL, while the first unit of this plant would be commissioned by April 2013, the second unit should be ready by September the same year. The project, upon completion, would generate about 9,629 million units of electricity annually.

A.M. Naik, Chairman and Managing Director, L&T, said: “We have expanded the scope of our capabilities in the power sector to offer our customers world-class plants with attractive project completion schedules.”

On the issue of cheaper power equipment imports from China, Naik said that modified sub-critical boilers were being sold by Chinese firms as super critical boilers. “China has a regulated economy, instead of a market economy, so the price difference created by their export subsidies is unfair to the Indian industry. Moreover, even the value of the Chinese currency is artificially fixed and is not floating,” said Naik.

source: Sify Finance

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