L&T eyes 8K-Crore revenue from nuclear power business

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New Delhi: Engineering and construction company Larsen & Toubro (L&T) expects the annual revenue projections of 7000-8000 crore from the nuclear power business. The nuclear power order book of L&T is currently at 1,000 crore. The company plans to take this up to 7,000-8,000 crore annually over next 12-18 months, once India launches its ambitious nuclear power capacity addition programme.

According to L&T Chairman and Managing Director, AM Naik, the company has already entered into agreement with four major global vendors of nuclear power equipment and has also initiated talks with French technology company Areva for a possible nuclear power plant. Over the past year, L&T has signed co-operation agreements with GE Hitachi of the U.S., Atomstroy Export (ASE) of Russia, Toshiba Westinghouse of the U.S. and Atomic Energy of Canada (AEC). The agreements are aimed at construction of nuclear power plants, using the designs suppliers by global players and supplying reactor equipment and systems, valves, electrical and instrumentation products.

"We expect that new orders for advanced nuclear power equipment by Nuclear Power Corporation (NPCIL) to begin from 2010-end or early-2011. This would provide us enormous opportunity to scale up our revenues from nuclear power business," said Naik. He called upon the state-run NPCIL to change its method of execution for setting up of new nuclear power plants to allow for turnkey projects instead of going to several vendors. NPCIL is the sole-government enterprise authorized to set up nuclear power plants at present.

"We are geared to take up nuclear projects on a turnkey basis. The revenues would increase close to 2,000 crore annually, if the present system of ordering continues," said Naik. He also added that the company has invested $500 million to expand its nuclear business and is capable of supplying 3,000-4,000 megawatt (MW) of equipment annually and build 4-6 reactors. "I don't think there is a chance to do more than 2,000 MW (domestically) because the country's not yet ready in a big way. We may, however, look at export market for balance capacity," Naik added.

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