Indian Larsen & Toubro nabs USD-23m EPC job for 10-MW solar park - report
Jul 19, 2012 - Indian engineering firm Larsen & Toubro Ltd (BOM:500510), or L&T, has won a INR-1.25 billion (USD 23m/EUR 18m) engineering, procurement and construction (EPC) order for a 10-MW solar park, The Hindu Business Line said earlier this week.
The daily quoted Shaji John, L&T head of solar initiatives, as saying that the price of INR 125 million per MW had been a culmination of scope, specifications, terms and conditions. The agreed price is higher than the average solar project capital costs of around INR 90 per MW at present, Business Line pointed out. It cited Vineeth Vijayaraghavan -- founder and editor of renewable energy newsletter Panchabuta, as saying that the higher contract price showed that the market was maturing and that customers were ready to pay more for "better life-cycle cost advantages".
L&T's solar head could not provide details on the 10-MW project, nor information on the customers due to non-disclosure agreements, the newspaper said.
The EPC services provider does not own any solar power generation assets as it is focused only on the development of such projects on turnkey basis. L&T's solar plant order backlog stands at INR 3.5 billion.