Monday, July 7, 2008
L&T to raise Rs 17,000-cr deb
Engineering and construction major Larsen & Toubro (L&T), which
recently forayed into power equipment manufacturing, is in talks with
a consortium of banks to raise over Rs 17,000 crore as debt to fund
its plans of entering the power generation segment.
The company was discussing with a consortium of international banks,
including home grown ICICI Bank and State Bank of India (SBI) to fund
four power projects, each with a capacity of over 1000 mega watt,
banking sources said.
L&T, which recently formed two subsidiaries - L&T Power Projects as
the investment vehicle for power projects and L&T Power Development
Ltd to set up power plants, is planning to invest over Rs 25,000 crore
in the next five years in setting up power projects.
Reportedly, L&T is in talks with consumer electronics major Videocon
Industries to set up a 1000 mw coal fired power project in Gujarat,
with an investment of over Rs 4500 crore.
Sources said L&T would fund the projects in 70:30 per cent debt-equity
ratio and plans to bank on its strong balance sheet and order book
position to raise the remaining equity portion.
The coal fired projects, ranging with a capacity of above1000 MW, are
likely to come up mainly in coal abundant states such as Jharkhand,
Orissa, Gujarat and other northern states.
A few months ago, A.M. Naik, L&T Chairman and Managing Director, had
revealed the company would set up over 5000 mw (nega watt) of power
projects within the next five years.
L&T has two joint ventures with Mitsubishi for building supercritical
turbines, boilers and is in the process of setting up a Rs 1,200-crore
manufacturing facility at Hazira in Gujarat.
Two days ago, the joint venture bagged Rs 1,557-crore order from
Andhra Pradesh Power Development Co (APPDCL) to build two
supercritical turbines of 800 mw capacity, becoming the country's
first company to win orders in this category.
India is planning to add 78,577 megawatts of power generation capacity
by 2012, mainly from coal-fired units, to overcome shortages in
electricity.
Subscribe to:
Post Comments (Atom)
News Flash from IndiaEarnings
 |
Saraswat Bk seeks RBI nod to acquire ailing South Ind Co Bk |
|
Telekom Malaysia to pick up addl 15% stake in Idea: Srcs |
|
Hind Rectifiers brd meet on June 24 to consider bonus issue |
|
Inflation will touch double digit mark next week: I-Sec |
|
NY Times in talks to buy 5% stake in Deccan Chron Arm |
|
Inflation for wk ended Apr5 revised to 7.71% vs 7.14%earlier |
|
Inflation for week ended May 31 at 8.75% vs 8.24% |
|
Indian economy won't be as badly hit as the global eco:DCB |
|
Over a period of time mkt may drift down to 4060 :Atul Suri |
|
Shriram Cap likely seller in Shriram City Un Fin block deal |
|
Shriram City Union Fin changes 12.2% Eq via block deal |
|
No big rally in mkt till oil pices cool off: Lehman Bros |
|
BoJ keeps key interest rate unchanged at 0.5% |
|
J&K Bank raises Prime Lending Rates by 100 bps to 14% |
|
L&T aays plan to list IT sdubsidiary in FY09 |
|
IFCI okays initiation of legal process to align LIC stk |
|
Rupee opens at 42.82/USD vs 42.84/USD on Thursday |
|
Karnataka Bank board approves 1:5 rights issue at Rs 100/sh |
|
45.37 lakh Suzlon shr change hands on BSE at Rs 250.95/sh |
|
Oil India plans to launch IPO by Sep: NW18 |
|
ABG Shipyard bags order worth Rs 127 Cr |
|
Nutrient base pricing is good for industry:RCF |
|
FM says avg prc of complex fert to decline by Rs 1416/t |
|
Deccan Chronicle likely to place Sieger Eq at EV of USD750 m |
|
BNP Paribas see 25 bps CRR hike before RBI July policy |
| Disclaimer | |
No comments:
Post a Comment