Larsen & Toubro Ltd and its international consortium partners of Paul Wurth Italia and India and India have bagged an EPC package, valued at over Rs 1,400 crore, for the expansion of Vizag Steel Plant of Rashtriya Ispat Nigam Ltd. This is the largest single-value EPC order by RINL and was bagged against stiff international competition from Chinese, Korean and Russian firms.
In line with the National Steel Policy envisaging production of 110 million tpa of steel in the country by 2019-20, RINL has embarked on a capacity expansion at Vizag. It had invited bids for installation of a new third blast furnace to double its capacity of hot metal from 3.2 mtpa to 6.5 mtpa.
L&T will construct the blast furnace - a state-of-the-art 3,800 cu.m. unit with a capacity of 2.5 million tonnes of hot metal per year. This is the second biggest blast furnace in India. L&T's construction division, ECC, will execute the contract in consortium with Paul Wurth Italia within a time-frame of 30 months.
L&T's work includes detailed engineering apart from certain areas of basic engineering based on the process-engineering being supplied by Paul Wurth. The indigenous manufacturing and supply of equipment lies in the scope of L&T. Apart from this, complete site services including civil and structural works and erection of equipment will be undertaken by L&T, with specialised supervision provided by Paul Wurth. L&T's contract-value is around Rs 810 crore.