Hyderabad: A subsidiary of GVK Power & Infrastructure Ltd, and construction major L&T have signed a pact for execution of a Rs 1,937-crore order for a road project in Madhya Pradesh.
The GVK group has awarded the contract to L&T to execute the road project on design, engineering, procurement and construction basis of a four-lane road of Shivapuri-Dewas section of National Highway-43 in Madhya Pradesh spread over a stretch of 235 km. According to the arrangement, the project has to be completed in 27 months.
This road project is part of the phase IV of the National Highway Development Programme. This road project is among three mega projects of NHAI. L&T is associated with all of them.
The project is being implemented by GVK Shivpuri Dewas Expressway Pvt Ltd, a step-down subsidiary of GVK. The concession agreement for the project was signed last month with National Highways Authority of India. The concession period for the project is for 30 years including construction period of 30 months.
Success in my Habit
Showing posts with label LandT. Show all posts
Showing posts with label LandT. Show all posts
Thursday, February 9, 2012
Thursday, September 1, 2011
L&T construction bags Rs 797 crore order
NEW DELHI: L&T Construction on Thursday said it has bagged Rs 797 crore orders in building and factories segment.
"A major order Rs 797 crore has been secured from a leading developer for mixed use construction comprising predominantly of residential, including retail and commercial developments at Mumbai," the company said in a statement.
The above order enhances orderbook of the company that has secured design and build contracts for airports, IT parks, commercial and residential space, it said.
Larsen & Toubro had last month bagged Rs 1,210 crore order from Qatar General Electricity & Water Corp for supply and construction of sub-stations. The order was for supply and construction of thirteen extra high voltage substations in Qatar.
"A major order Rs 797 crore has been secured from a leading developer for mixed use construction comprising predominantly of residential, including retail and commercial developments at Mumbai," the company said in a statement.
The above order enhances orderbook of the company that has secured design and build contracts for airports, IT parks, commercial and residential space, it said.
Larsen & Toubro had last month bagged Rs 1,210 crore order from Qatar General Electricity & Water Corp for supply and construction of sub-stations. The order was for supply and construction of thirteen extra high voltage substations in Qatar.
Tuesday, July 26, 2011
Reliance Power, LandT, Adani Power, GMR Energy and 17 others bid for Rs 1,025-cr Tamil Nadu-Karnataka power link
NEW DELHI: Twenty-two domestic and foreign companies have bid for setting up a Rs 1,025-crore power transmission project connecting Tamil Nadu and Karnataka even as the central government tightened eligibility rules.
While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power,GMR Energy andTorrent Power are among the Indian bidders, the foreign companies included Spain's Elecnor, Isolux, Instalaciones Inabensa and Cobra Instalaciones.
Power Finance Corp is coordinating the bidding for the build-own-operate project, which involves laying two high capacity 250-km transmission lines to connect Nagapattinam with Madhugiri in Karnataka.
The government had revised the bidding norms for transmission projects three months ago. Now, a bidder should have experience in setting up any infrastructure project of the same cost as that of the transmission project. Earlier this requirement was one-fifth of the size of the transmission project.
The government has identified three more high-capacity transmission systems to be awarded to private companies. PFC and Rural Electrification Corp would conduct bidding for these projects. The two companies have so far awarded six such projects worth 10,860 crore for strengthening interconnection between the north and western regions.
Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links.Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded the sixth contract. Power transmission is a monopoly of Power Grid Corp, which owns and operates about 45% of inter-state transmission system.
While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power,GMR Energy andTorrent Power are among the Indian bidders, the foreign companies included Spain's Elecnor, Isolux, Instalaciones Inabensa and Cobra Instalaciones.
Power Finance Corp is coordinating the bidding for the build-own-operate project, which involves laying two high capacity 250-km transmission lines to connect Nagapattinam with Madhugiri in Karnataka.
The government had revised the bidding norms for transmission projects three months ago. Now, a bidder should have experience in setting up any infrastructure project of the same cost as that of the transmission project. Earlier this requirement was one-fifth of the size of the transmission project.
The government has identified three more high-capacity transmission systems to be awarded to private companies. PFC and Rural Electrification Corp would conduct bidding for these projects. The two companies have so far awarded six such projects worth 10,860 crore for strengthening interconnection between the north and western regions.
Vedanta Group's Sterlite Transmission Projects has bagged contracts to build three large power transmission links.Reliance Power has bagged two such projects while a consortium of Simplex Infrastructure, Patel Engineering and BS Transcomm has been awarded the sixth contract. Power transmission is a monopoly of Power Grid Corp, which owns and operates about 45% of inter-state transmission system.
Wednesday, April 20, 2011
L&T to hive off electrical & automation business
MUMBAI: Larsen & Toubro will hive off its electrical and automation business as a part of its restructuring, the company said on Tuesday.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
According to analysts, the move is a step towards selling off the business. The sale has been widely anticipated for months, with Francebased Schneider Electric and NYSE-listed Eaton Corporation believed to be in the race to acquire the business. ET's business channel, ET Now, reported on Tuesday that L&T is close to sealing the deal with Eaton for around $1.5 billion (around Rs 6,682 crore).
Eaton Corp declined comment. "We do not comment on speculations or rumors. When we have any news, we will use the regular channel to communicate to the media," Eaton Corporation said in a response to ET's query. Earlier, Larsen & Toubro said in a note to its shareholders: "Considering the challenges of operating the electrical and automation business as a part of the business portfolio of a predominantly project and construction company, it is proposed to restructure the business by transferring it to a subsidiary company and/or an associate company or any other entity."
"This restructuring of business is required so that it is able to realise its full potential and participate comprehensively in the growth of the industry," the company said. Shares of L&T rose 1.6% to end at Rs 1,706.80 rupees on the Bombay Stock Exchange on Tuesday, reacting to the company's decision to spin off the business into a separate subsidiary.
"This in our view is part of L&T's move to exit businesses which are dilutive on returns, where it doesn't have clear leadership and re-allocate capital. L&T is set for. 613 billion of capex in infra development businesses, which needs. 184 billion (assuming 30%) as equity," Bharat Parekh, analyst, Bank of America-Merrill Lynch said in a report.
The proposed company would include L&T products and solutions in the electrical distribution and industry automation space. The division clocked sales of. 3,675 crore in 2009-10 (April-March ), with an operating profit of. 390 crore. It accounts for around 7% of the company's total turnover. After the retirement of the division's president RN Mukhija last year, the division has not had a representative on the board of the company. As a strategy, L&T has in the past sold its non-core businesses such as petrol pump vending machines and cement businesses.
It has also exited joint ventures such as L&TCASE Equipment Private and Voith Paper Technology India. "As a part of our strategy, we are continuously looking at our portfolio to determine what action we should take," JP Nayak, wholetime director and president (machinery & industrial products), told ET in a recent interview. "Our objective will be to have a portfolio in those areas where growth and profit potential is better, and try to get out of those areas where it may not be worthwhile for us to spend our valuable resources," he had said.
Deal Street
L&T wants to restructure biz by transfering it to a subsidiary or associate company Schneider Electric & Eaton are believed to be in the race to acquire the business In the past, L&T had sold its non-core businesses such as petrol pump vending machines and cement businesses.
LandT, Bhel to gain from new PGCIL norm
MUMBAI: Competition for high-voltage power sub-station projects is heating up after state-run Power Grid Corporation of India (PGCIL) altered the eligibility criteria for the bidding process for the segment.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
Power Grid, which transmits 45% of the power generated in the country through its over 81,000 circuit-km transmission lines, has separated the circuit breaker and sub-station packages in tenders floated over the past few months. This has paved the way for newer players to join the bidding process.
So far, only leading multinational transmission and distribution companies -such as ABB , Siemens and Areva T&D , which together account for almost 70% of the high voltage 765 kV market in the country-were qualified for the 765 kV circuit breakers, and domestic engineering companies found it difficult to match the price if they procured circuit breakers from foreign vendors.
"PGCIL move to award tenders for sub-stations projects and circuit breakers separately gives new entrants such as Crompton Greaves, L&T and Bhel a chance to participate in this growing market," Lakshminarayana Ganti, research analyst at BNP Paribas Securities Asia , said in a report. High-voltage circuit breakers protect and control electrical power transmission networks.
Sub-stations are installations in the power grid that transform voltage levels and facilitate safe and efficient transmission and distribution of electricity. Power Grid plans to invest about. 55,000 crore during the 2007-12 Plan period to develop transmission systems. Infrastructure based on high voltage 765 kV would account for around 30% of the company's total transformation capacity target.
"International players had a cost advantage in the high voltage market, as they also manufacture some components. But it is a crucial and growing area in T&D space and we have worked towards pre-qualification to make ourselves eligible," KV Rangaswami, president (construction), Larsen & Toubro, said. Crompton Greaves, which acquired high voltage technology through overseas acquisitions, has come up as a strong player in the domestic transmission and distribution market.
"In India, the T&D equipment sector presents opportunities amounting to some $123 billion over the country's 11th and 12th Plan periods. Historically, Crompton Greaves has had a market share of 6-7 %. However, as it moves up the technology curve, and with its head-start over domestic competitors in the 765 kV space, Crompton Greaves could grow its share," Amar Kedia, analyst at Nomura Financial Advisory and Securities (India), said in a report recently.
Analysts say near-term order inflows may remain elusive as order revival from Power Grid is likely only in the second half of 2011, but the competition for these order would continue to increase.
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