Punj Lloyd is in talks with global nuclear power equipment and technology companies such as General Electric and Westinghouse to offer engineering, procurement and construction (EPC) services for setting up nuclear power plants in the country.

The company also plans to foray into onshore drilling rigs business for oil and gas companies in India and abroad as part of its diversification drive and is investing Rs.40 crore in the first phase by March 2008.

The company's board has approved setting up a subsidiary - Punj Lloyd Upstream Ltd - for getting into drilling rigs business. The company will be buying onshore drilling rigs to start with and later expand into offshore rigs. These rigs will hire or lease to oil and gas companies such as ONGC and RIL in India and even other firms overseas.

The company, which has a cumulative order book of about Rs.16,000 crore, plans to spend about Rs.500 crore as capital expenditure in 2007-08 to augment capacities. Another Rs.400-500 crore will be raised as debt for working capital to fund the orders it is executing over the next 24 to 30 months in India and abroad.The capital expenditure will be utilised in augmenting the company's construction equipment for building new oil and gas pipelines and strengthening offshore capabilities.