L&T has set up a 74:26 JV with the Nuclear Power Corp. of India (NPCI) to manufacture special steel and ultra-heavy forgings at a new integrated facility at Hazira in Gujarat. The JV is expected to supply finished forgings for nuclear reactors, pressurizers & steam generators, in addition to heavy forgings for
critical equipment in the hydrocarbon sector as well as for thermal power plants.
The JV is expected to entail an investment of Rs17.25bn of which Rs5bn would be the equity component while the remaining will be debt.
The setting-up of the forgings capacity is expected to close a critical gap in Indian industry’s ability to produce equipment for nuclear, thermal power
and hydrocarbon plants. With India expected to set up 20GW of nuclear power capacity by 2020, we expect the JV to add significant value for L&T in the long run.
