L&T has drawn out a capex plan of Rs 1,500 crore for this fiscal to invest in projects relating to power, including equipment manufacturing, shipyard and port development.

The company has already invested Rs 1,500 crore of the total project cost estimated at Rs 12,500 crore. The company is planning to invest Rs 1,000 crore more in the next fiscal. The projects are scheduled to be completed by 2012.

L&T formed a JV with the TIDCO to develop an integrated shipyard complex with a port facility in Tamil Nadu at cost of Rs 3,300 crore. Besides, plans are afoot to build large tonnage ships of up to three lakh dead weight tonnage at the shipyard.

Moreover, the company is in the process of developing an all-weather deep port along with Tata Steel at Dhamra in Orissa at an investment of Rs 2,460 crore. The port project, awarded by the Orissa Government, is being developed on BOOST 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 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.

Also See:

L&T wins Rs 651 cr orders (1-Jul-09)