L&T Power Hazira unit to go on stream by year-end

L&T Power Ltd, a subsidiary of Larsen & Toubro, expects its Hazira facility to be fully commissioned by the end of this year. Mr Ravi Uppal, Chief Executive Officer and Managing Director, L&T Power, said that the company would look at ramping up operations at the Hazira plant from 4,000 MW to 6,000 MW once the company “gets the 4,000 MW thoroughly booked”.

Sustainable demand

“If we see a sustainable demand exceeding 4,000 MW per year, then we will look at expanding the capacity, which would be go up to 6,000 MW,” he said.Explaining that the facility has been constructed in modules with a base module capable of manufacturing 4,000 MW, he added, “it should not take us long to add our next module, which is 2,000 MW”.However, capacity addition is still in the ideation stages, though the company has an “open-ended investment plan”, added Mr Uppal.

investment

The company has invested about Rs 3,500 crore in completing the entire set-up at Hazira, the company's integrated manufacturing complex for power-generation equipment. Production has already started here and the Hazira plant would be fully commissioned by the end of this year (2010). According to him, the company has an order book worth Rs 30,000 crore.

“All the projects that we have secured are under execution and are going as per time or ahead of time,” he said. The company, which has orders from both public and private sectors, will be delivering its first large turbines to Andhra Pradesh in October, pointed out Mr Uppal.

‘TOO BUSY' FOR IPO

On whether the company would be opting for an intial public offering (IPO) any time, he said that it was “premature” to talk about an IPO.“We are right now too busy getting our act together in setting up manufacturing units and executing the contracts that we got in the market.”