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L&T secures $480 million worth orders from Bangladesh

LiveMint logoLiveMint 28-05-2014 P.R. Sanjai

Mumbai: Engineering and construction company Larsen and Toubro Ltd (L&T) on Wednesday said it has received two EPC (engineering, procurement and construction) orders valued at around $480 million for setting up dual fuel-fired gas-based combined cycle power plants in Bangladesh.

The orders come after L&T, India’s largest engineering and construction company, tweaked its strategy to chase more foreign orders in order to shield itself against potential rivals in the home market. The company plans to raise the share of international orders to one-fourth of all new orders by value from the current one-fifth.

The company said it beat off competition from European, Japanese, Korean and Chinese rivals to bag the orders.

One order of approximately $280 million has been received from Marubeni Corp., Japan, for setting up a 360 MW Bheramara Combined Cycle Power Plant Development Project of North West Power Generation Co. Ltd (NWPGCL) in Bangladesh.

NWPGCL, a fully owned enterprise of Bangladesh Power Development Board, is currently developing around 750 MW of gas-based power plants in the north-western region of Bangladesh and has awarded the contract to set up the 360 MW Bheramara project in Khulna Division of Bangladesh to Marubeni, which has in turn awarded the EPC job to L&T on a turnkey basis.

The order was bagged by L&T against stiff global competition from Japanese and European companies, the company said in a statement.

Another order of approximately $200 million has been received from Bangladesh Power Development Board for setting up the 225 MW Sikalbaha Combined Cycle Power Plant near the port city of Chittagong.

“It was bagged against international competition from European, Chinese and Korean EPC companies. The plant will incorporate state-of-the-art gas turbines and steam turbines from Siemens AG, Germany and other steam turbine manufacturers, which will be procured by L&T,” L&T said.

Meanwhile, in a separate development, the construction unit of L&T has secured fresh orders worth `2,458 crore across various business segments in May 2014, `1,634 crore of it in the power transmission and distribution business.

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