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| Edited By: Vivek Seal |Source: DNA |Updated: Mar 16, 2018, 05:32 AM IST
Engineering and construction major Larsen & Toubro Ltd will supply and construct boiler and steam turbine and generator (STG) islands for a 1,320 megawatt (mw) thermal power project that Jaiprakash Power, the power unit of Jaypee Group, is setting up in Madhya Pradesh.
Jaiprakash Power has signed an agreement with L&T-MHI, which is a joint venture between L&T and Mitsubishi Heavy Industries, for supply of super-critical boilers, turbines and generator packages for the 2x660 mw Jaypee Nigrie Super Thermal Power Project, which is being set up in Singrauli district of Madhya Pradesh.
Jaiprakash Power is looking to invest Rs 8,000 crore on the power project, which includes an outlay of about Rs 4,000 crore for boiler turbine and generator (BTG).
Manoj Gaur, executive chairman, Jaiprakash Associates Ltd, told DNA Money, “The funding will be through an equity-debt ratio of 3:7. So we would invest around Rs 2,500-3,000 crore from internal accruals and rest will be through debt, for which we already got a commitment. As financial closure has been achieved and ICICI was consulting us, we see no problems in raising debts of around Rs 5,500 crore,”
The companies are expecting to commission the two units within 45-51 months.
The contract for the boiler island has been given to L&T-MHI Boilers, the steam turbine generator has been given to L&T.
Gaur added that Jaiprakash Power Venture will merge with Jaypee Hydro in the
next four to five months to save cost through synergies, and the whole process is expected to be completed in 4-5 months.
