L&T floats power firm, to invest Rs 5,000cr

Larsen and Toubro (L&T) has floated a power generation firm - L&T Power Development - and is planning to generate 5,000 Mw in the next five years.

A M Naik, chairman and managing director, L&T, said: "The overall investment in the company would be Rs 20,000 crore. L&T would invest Rs 5,000 crore, and the rest would come through debt."

L&T has 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 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.