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Steel Authority of India ties up with Larsen and Toubro for power plants
By siliconindia
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Tuesday, 30 September 2008, 19:30 IST
New Delhi:State-run Steel Authority of India Ltd (SAIL) has entered into an agreement with engineering and construction major Larsen and Toubro (L&T) to jointly set up, develop and manage power plants, a move that would help the steel giant meet its growing power demand.
The two companies Tuesday signed a memorandum of understanding (MoU) to jointly set up, develop, manage and own captive or independent power plants at suitable locations to meet further power requirements of SAIL, said an official release by the ministry of steel.
According to the release, SAIL's power requirement was likely to increase from the present level of 950 MW to about 1,826 MW by 2010, and 4,066 MW by 2020.
"The scope of agreement also includes exploration of opportunities to own captive thermal coal blocks to cater to the power plant requirements," it said.
The MoU was signed by SAIL's executive director (corporate planning) A.K. Jain, and L&T vice-president and head of thermal project development R.K. Sharma.
SAIL chairman and managing director (CMD) S.K. Roongta and L&T CMD A.M. Naik were present on the occasion.
"The coming together of SAIL and L&T will be a trend-setter for developing large thermal power plants through public-private partnership," Roongta said.
Said Naik of L&T, "It is a cherished dream for setting up large plants in joint venture with a premier public sector firm coming true."
Tuesday's MoU would be followed by a joint venture (JV) agreement between the two firms for incorporating a joint company to set up power projects.
"The JV company shall strive to identify/locate potential thermal coal blocks, which will facilitate in identifying a suitable location for the power project," said the ministry statement.
"SAIL and L&T shall jointly set up a 1,600 MW green-field coal based captive/independent power plant using super critical technology. The companies will keep the option to further expand capacity by 800 MW/1600 MW at the same or some other location," it added.