L

New Delhi, Apr 17: Larsen&Toubro Ltd today announced it has inked a joint venture agreement with Mitsubishi Heavy Industries Ltd (MHI) for setting up a manufacturing facility for super-critical boilers at an outlay of Rs 300 crore.

The proposed JV will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. It will have its engineering centre in New Delhi.

''The site for the manufacturing facility will be announced shortly, and manufacturing is expected to commence in the later part of FY 2008-09,'' the company informed the bourses.

The new company will handle the full spectrum of activities relating to supercritical pressure boilers, from manufacture and sales to installation and after-sale service, it added.

The company has been scouting for an equipment partner possessing advanced technologies while MHI has been seeking a foothold in power generation operations within India's rapidly growing market.

L&T is currently engaged in 'engineer-procure-construct' contracts for power &xD;projects as well as manufacture of complete condensing and feed heating systems for power plants.

The tie-up follows a technology transfer and license agreement signed recently by the company and MHI.

UNI