This follows a technology licensing and technical assistance agreement for manufacturing super-critical turbines and generators, signed between L&T Mitsubishi Heavy Industries, and Mitsubishi Electric Corporation.

Supercritical turbines use higher steam temperatures and pressures than sub-critical pressure power generation, and are more fuel-efficient and environment friendly. Coal-based plants using super critical technology reduce coal consumption relative to power output thus reducing carbon dioxide (CO2) emissions can be reduced by roughly 2.5 per cent.

An integral component of energy efficient coal based power plants, supercritical turbines are expected to meet the demand-supply gap for power plant equipment as envisaged in the country''s plan for a mega ramp up in power generation capacity using super-critical technology.

However, supercritical generation requires more sophisticated technology in equipment design to withstand the high temperature and pressure levels, and machining of high-strength component materials is a complex task, as they are engineered to operate at steam pressures above the critical point of water: 22.12MPa and 374.15°C (705.5°F/647.3K).

Mitsubishi Heavy Industries has vast experience in these systems, having already delivered approximately 70 units in Japan and abroad.

L&T says the establishment of the joint venture represents a further strengthening of its already established relationship with Mitsubishi Heavy Industries. It already has a joint venture with Mitsubishi Heavy Industries for manufacturing super critical boilers.

The Mitsubishi Group has been keen on a foothold in the core equipment field in the power generation sector in India considering the country''s growing power demand while L&T has been looking for a technology partner with state of art technologies who would be willing to invest and work with it.

The proposed manufacturing joint venture, with a capital outlay of around Rs880 crore, will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. The manufacturing operation expected to commence sometime during the later part of FY 2008-09.

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is among the leading global heavy machinery manufacturers with consolidated sales of around $25 billion. Its diverse line up of products and services encompass shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

Mitsubishi Electric Corporation (Mitsubishi Electric), headquartered in Tokyo, Japan, is a recognised world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. It recorded consolidated group sales of of approximately $32.7 billion in the fiscal year ended 31 March, 2007.