Can L&T turnaround its Rs 11,000 crore Punjab Power Plant?


Can L&T turnaround its Rs 11,000 crore Punjab Power Plant?

Engineering behemoth Larsen & Toubro (L&T) owned supercritical power plant at Nabha in Punjab, which is facing shortage of thermal coal in running the plant and shut down of one of its 700 megawatt (MW) unit in mid-2018, is looking for a sustainable turnaround as the power producer stares at a financial liability of around Rs 8,000 crore.

The company, which made the first unit operational in December 2013, built the project at a cost of Rs 11,000 crore, including an equity contribution of around Rs 3,000 crore. The positive news is that power demand has picked up in the country after rampant electrification of households and rise in the industrial demand.

In the last financial year, the power producer made a profit of Rs 245 crore on a turnover of Rs 3,778 crore. It made a loss of Rs 26 crore in the previous year.

Nabha Power owns and operates two 700 MW (total 1400 MW) supercritical thermal power plants. Read More

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