L&T to buy power technology from Mitsubishi

Larsen & Toubro (L&T) has signed a Rs 450 crore agreement with Mitsubishi Heavy Industries (MHI) to buy technology for the manufacture of super critical boilers to meet the requirements of mega power projects being planned in India.

According to a release issued by L&T today, the use of supercritical parameters in large power plants results in decrease of turbine cycle heat rate thereby increasing the operating efficiency.

"Under the agreement, MHI will grant an exclusive licence and transfer know-how and technical information to L&T's power business unit. The agreement covers design, engineering, manufacture, testing, inspection, erection, installation, commissioning, operation, repair, services and retrofitting of super critical boilers and pulverisers," the release added.

The licence, which is valid for 20 years, will cover an output range between 300-1,000MW or nominal super critical coal fired thermal power plants, the release added.

Mitsubishi has also teamed up with L&T for a joint venture in the business area, and the investment in the venture is about Rs 450 crore.

K Venkataramanan, president (engineering and construction) of  L&T, said: "There is a lot of scope for power generation in states like Bihar, Orissa, Madhya Pradesh, and Andhra Pradesh where coal is abundantly available."