Larsen & Toubro Ltd is considering a foray into the power generation sector, with plans to invest in 1000MW to 2000MW of power generation capacity in the coming years, and eventually expand to an overall generating capacity of 5000MW in a period of five years thereafter. The Indian government has committed to investing USD 12.3 billion in the power generation and transmission sectors this fiscal year. L&T expects to win orders worth more than USD 2.2 billion in power generation projects this year. The firm is also optimistic about securing orders in the power transmission business, which accounts for about 75% of the revenue and 70% of the operating income of L&T’s Engineering, Construction and Contracts division. India is expected to invest USD10 billion during the next five years in enhancing the country’s transmission network.
