labels: larsen & toubro, industry - general, tata power company
L&T, Tata Power await parity with PSU defence units news
05 December 2006

Mumbai: Engineering and construction major Larsen and Toubro and Tata Power have applied for the 'Rashtriya Udyog Ratna' status that would allow them to bid for defence contracts on a par with public sector defence companies.

"The Rashtriya status will enable us to bid for defence contracts and we will be treated on par with defence PSUs," company sources said, adding that applications made by the companies are pending with a special committee set up by the defence ministry.

The two companies have bagged contracts worth Rs172 crore for supply of Pinaka multi-barrel rocket launchers for two regiments of the Indian Army.

The Defence Research and Development Organisation (DRDO) has roped in L&T for developing prototypes for various projects. It has also strong capabilities in composites for aerospace applications.

Tata Power's strategic electronics division has recently received seven licences for various defence projects recently for electronic warfare, naval combat and air defence.

The defence ministry panel is expected to give its final decision by this fiscal, top officials of L&T and Tata Power said.

The government move to allow private companies to participate in defence production followed the recommendations of the Vijay Kelkar Committee and the constitutional amendment in 2001.
The move also opens up contracts worth over Rs17,000 crore, currently being awarded to the Ordnance Factory Board and eight other defence PSUs.

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L&T, Tata Power await parity with PSU defence units