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New Delhi, Nov 13: Larsen&Toubro Ltd today announced that it has signed an agreement with Japan's Mitsubishi Heavy Industries Ltd (MHI) for transfer of technology for the manufacture of super critical boilers, to become a comprehensive player in the power sector.

Under the agreement, Mitsubishi will grant an exclusive 20-year licence and transfer the know-how and technical information to the power business unit of the company.

The areas covered under the agreement include design, engineering, manufacture, testing, inspection, erection, installation, commissioning, operation, repair, services and retrofitting of super critical boilers including pulverisers.

The licence would cover output range from 300 MW to 1000 MW or nominal super critical coal fired thermal power plants.

The company also said that MHI has expressed interest to be its joint venture partner in this business area. The investment in the venture is about Rs 450 crore.

The engineering and construction major's plans in the power sector include full spectrum from power project development, manufacture of power plant equipment and construction.

The use of supercritical parameters in large power plants results in decrease of turbine cycle heat rate thereby increasing the operating efficiency. This leads to reduced fuel consumption and helps in conservation of the depleting fuel resources.

MHI Group, with a turnover of around 25 billion dollars, has diverse manufacturing interests including power equipment chemical and machinery plants, materials handling systems, transportation systems, waste treatment, steel structures, ships and machine tools.

UNI