L&T, Mitsubishi Heavy in Rs880 cr turbine JV

L&T, Mitsubishi Heavy in Rs880 cr turbine JV

Reuters

Mumbai: India’s top engineering and construction firm, Larsen & Toubro, and Japan’s Mitsubishi Heavy Industries will form a joint venture to make steam turbines and generators, the Indian firm said.

The joint venture, with a capital outlay of about Rs8.8 billion (Rs 880 crore, $224 million), will cater to power plants with a capacity of 500-1,000 megawatts and start production in India in 2008-09, it said in a statement to the stock exchange on Monday.

It said Larsen had been looking for a partner which had modern technology and was willing to invest in India, while Mitsubishi had been seeking a foothold in the power generation and equipment sector in the country.

Larsen already has a joint venture with the Japanese firm for manufacture of boilers.

“The establishment of the joint venture represents further strengthening of already established relationship with Mitsubishi Heavy Industries," it said.

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