Larsen & Toubro and its international consortium partners have bagged two major EPC contracts valued at Rs 1,550 crore for Tata Steel's 2.4 million tpa steel capacity expansion project in Jamshedpur. L&T's share in these projects will be Rs 1,000 crore.

The first contract, valued at Rs.1,190 crore, is for constructing India's largest blast furnace of capacity 2.5 million tpa. L&T will execute the contract within 32 months, in consortium with Paul Wurth Italia. L&T's share in the contract would be Rs.713.9 crore.

The second contract is for constructing a Rs.360 crore sinter plant with capacity 2.3 million tpa, to be constructed within 24 months. L&T will execute the contract along with Outokumpu Technologies of Germany, and will have a share of Rs.288 crore in the contract.

Background: Tata Steel is expanding its Jamshedpur steel complex capacity to around 7 million tpa. Phase I of the project, envisaging expansion from 4 million tpa (original capacity) to 5 million tpa is underway. The contract awarded to L&T represents the onset of Phase II where capacity would be raised by another 2.4 million tpa. Tata Steel has targeted to achieve capacity of 15 million tpa by 2010 -- a programme that would include expansion of the Jamshedpur complex, greenfields steel projects in India and overseas acquisitions.

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