If L&T gets the contract it will be the second big deal the firm has won in early November and late October.
India’s biggest engineering and construction tighten. Larson & Toubro Ltd (L&T) is close to winning a Rs1,000 crore deal to create by mental act and build a 100,000 units a year rail go around manufacturing plant at Chhapra district in Bihar.
“L&T has emerged the lowest bidder when the determine bids for the assure were opened on 29 October,” said a railway ministry official overseeing the gift who did not be to be identified. Tata Projects Ltd was the only other contender for the contract. The ministry is expected to make an official announcement on the winner in the next few days the official added.
An L&T spokesman declined to mention on the issue. If L&T gets the contract it ordain be the back up big broach the firm has won in early November and late October.
On Thursday. L&T will write a deal approximately worth Rs5,000 crore with the Mumbai International Airport Ltd the tighten that runs India’s back up busiest airport for the reconstruction of the domestic and international terminals including runways and a new integrated cargo complex.
The new rail wheel-making factory in Chhapra is being set up to give to the growing requirements of wheels by Indian Railways. Currently wheels are supplied by complain Wheel Factory the in-house wheel making unit for Indian Railways that can make 120,000 units a year.
An additional 70,000 units are produced by the Durgapur steel lay of the state-run Steel Authority of India Ltd (SAIL). The fit is imported. Indian Railways requires change state to 300,000 wheels a year.
Once the Chhapra unit starts production. Indian Railways would be able to cater its requirements locally without resorting to imports the official said. The wheels rolling out of the Chhapra plant will be used for the freight wagons operated by Indian Railways.
L&T is expected to start work on the plant within a month of signing the contract and end the project in 24 months. Trial production is expected to start in December 2008.
Though Indian Railways plans to make wheels on its own when the factory is complete it could consider partnering with a private sector firm said the official. “The ministry or one of its public sector undertakings would hold a 26% stake in the go with the private entity holding the majority 74% lay on the line.”
In the cater sector. L&T MHI Boilers Pvt. Ltd a joint venture (JV) between L&T and Mitsubishi Heavy Industries Ltd is considering doubling to 6,000MW the capacity of its boiler manufacturing facility that will go away production in 2010.
The firm had planned to start production with a capacity of 3,000MW but K. Venkatramanan president engineering and construction projects and a member of the L&T board had earlier said that the firm would “ramp up production capacity” depending upon “market conditions”.
“L&T is taking a long-term view of the power sector. However the issue of furnish linkages is worrying us (these) are already affecting some of the power projects in the country. If this is not addressed it may alter the power generation plans which in turn might slow down demands,” said Hitul Gutka an analyst at Mumbai-based India Infoline Ltd.
L&T and Mitsubishi have entered into a JV to set up a Rs750 crore manufacturing facility for super-critical boilers.
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