L&T may set up JV with Toshiba in power sector

Mumbai: Larsen & Toubro is in talks with Japan's Toshiba Corporation for setting up a joint venture in India to manufacture power plant equipment. L&T officials said the discussions with the Japanese company were at a preliminary stage and the proposal is to set up a facility for making turbines for power plants.

Reports indicated that L&T would hold majority stake in the joint venture, which will invest about $173 million to build plants for steam turbines and power generators.

A report quoting the Nikkei business daily said the joint venture aims to have an annual turnover of 20 billion in five years.

Toshiba, which has been expanding its power business, acquired the US nuclear power plant maker Westinghouse for $5.4 billion last year.

L&T''s entry into the power sector follows its recent tie-up with Mitsubshi Heavy Industries, another Japanese major, for manufacture of boilers for power projects. The joint venture - L&T Boilers Ltd - plans to invest Rs450 crore.