Engineering and construction major Larsen & Toubro tody said that it has signed a memorandum of understanding with GE Hitachi Nuclear Energy for the construction of nuclear power plants in India.

GE-Hitachi Nuclear Energy is a joint venture between US conglomerate General Electric Co and Japan's Hitachi. Based in Wilmington, NC, GE-Hitachi has become a world-leading provider of advanced reactors and nuclear services.

The MoU envisages co-operation on boiling water reactor or BWR and advanced boiling water reactor or ABWR nuclear power plants. GE-Hitachi's ABWR technology is the world's only commercially proven generation III advanced reactor design, with four units in operation and another four under construction.

L&T said this MoU with GEH was a major step forward for the company in the manufacture and construction of ABWR components and systems.

L&T and GEH hope to utilise indigenous capabilities for the complete construction of nuclear power plants, including supply of reactor equipment and systems, valves, electrical and instrumentation products for ABWR plants to be set up in India.

"The agreement with L&T is an important step in gearing up to meet the country's power needs through nuclear energy," said Kishore Jayaraman, chief executive officer, GE Energy, India, Srilanka & Bangladesh.

The MoU with L&T is one of the first preliminary nuclear technology trade agreements to be announced by a US-majority owned company since the United States and India adopted a civilian nuclear energy accord in October 2008.

In March 2009, GEH announced an ABWR development agreement with Nuclear Power Corporation of India (NPCIL), India's only nuclear utility, operating 17 reactors. GEH is building its local supply chain in India and is exploring new business opportunities for civilian nuclear power in India that also include plant services and providing fuel for existing and new nuclear power plants.

Under their new agreement, GEH and L&T will plan for the construction and engineering management resources that will be needed to build the proposed ABWR power station.

GEH will serve as the technology provider of certain ABWR nuclear island equipment and components, as well as related engineering and technical advisory services. GEH also intends to apply the latest ABWR modular construction techniques.

L&T will collaborate with GEH to engineer, manufacture, construct and provide certain construction management services.