SAIL sign pact with L&T for power projects

New Delhi: State-owned Steel Authority of India (SAIL) said it had signed a memorandum of understanding with engineering and construction major, Larsen & Toubro, for jointly setting up power projects.

The scope of agreement also includes exploration of opportunities to own captive thermal coal blocks to cater to the power plant requirements.

The two firms will jointly set up, develop, manage and own captive or independent power plants to meet SAIL’s requirements, the steel major said in a statement, without disclosing any financial details of the venture.

The companies will form a joint venture within three months, it said, and set up a 1,600-MW greenfield coal-based power plant with an option of further expanding its capacity.

“Both the companies shall jointly set up a 1,600-MW (2x800 MW) greenfield coal-based captive 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,” the statement said.

The power requirement for the SAIL plants is currently being met primarily through captive power plants, including those through joint ventures with players, including NTPC Ltd.

The balance requirement is met through distribution companies of the respective grids. SAIL’s power requirement is likely to increase from the present level of 950 MW, to about 1,826 MW by 2010, and 4,066 MW by 2020.