The Hindu Business Line : L&T to invest Rs 1,500 cr in power, port projects

Mumbai, July 20 Larsen and Toubro plans to invest Rs 1,500 crore this fiscal in its projects relating to power, including equipment manufacturing, shipyard and port development.

The company has already invested Rs 1,500 crore in these programmes, the total project cost of which is about Rs 12,500 crore.

According to Mr Shankar Raman, Executive Vice-President, Finance, L&T’s share here would be about Rs 4,000 crore with the balance bankrolled. As far as the Ultratech Cement stake sale of Rs 1,020 crore was concerned, he said it would be deployed alongside as it was equity recouped.

L&T would invest Rs 1,000 crore more next fiscal and thereafter this would be completed with bank assistance.

The cash and cash equivalent on the balance-sheet were about Rs 5,000 crore. The projects are scheduled for completion in 2011-12, he added.

Port in TN

L&T has a joint venture agreement with the Tamil Nadu Industrial Development Corporation to establish an integrated shipyard complex with a port facility in the State at about Rs 3,300 crore. Plans are on to build large tonnage ships of up to three lakh dwt (dead weight tonnage) at the shipyard.

It has decided to go in for an integrated port facility because of the cost and the breakwater construction work involved.

All-weather Deep port

The company is midway in the development of an all-weather deep port along with Tata Steel at Dhamra on the Orissa coast at a cost of Rs 2,460 crore.

The port project, awarded by the Orissa Government, is being developed on BOOST (build, own, operate, share and transfer) mode.

The concession period is 34 years, including four years for construction.

The lease period may be renewed or extended for two additional periods of 10 years each.

L&T has also established shipbuilding facilities at Hazira.

It has tied up with Mitsubishi Heavy Industries for setting up a unit for supercritical boilers, super steam turbines and generators at an investment of Rs 1,500 crore.