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L&T identifies Kudgi power line as “non-core” asset, marked for divestment

Kudgi L&T | T&D India

 

Larsen & Toubro has identified its Kudgi transmission line for disinvestment, as part of the company’s plan of completely exiting its non-core business.

In a release, D.K. Sen, Whole-time Director Et Sr. Executive Vice President (Development Projects), L&T, said that the company has already identified its non-core assets in various areas like power generation, power transmission, metro rail and roadways.

“We will work out the divestment process of all these assets over a period of time,” Sen remarked.

The L&T official said this in a press release that announced L&T’s completing the divestment process of its 99-mw Singoli-Bhatwari hydropower project in Uttarakhand. L&T sold its entire 100 per cent equity stake in the hydropower asset to ReNew Power, for a consideration of  Rs.1,001.50 crore.

This deal, is in line with the company’s strategy to pursue the divestment path for all non-core assets in its portfolio, L&T said.

The development business of L&T is housed under its wholly-owned subsidiary L&T Infrastructure Development Projects Ltd (L&T IDPL).

Some of the areas where L&T is engaged as developer include:

Power transmission

L&T is the developer of the Kudgi transmission line associated with evacuation of power from NTPC’s 3×800-mw Kudgi power plant (Phase-1) in Karnataka. L&T won this project through Kudgi Transmission Ltd (a wholly-owned subsidiary of L&T-IDPL), under the tariff-based competitive bidding (TBCB) route in around August 2013. The transmission system, comprising 765kV and 400kV lines, has been in operation since September 2016.

 

The Kudgi power line marked L&T’s entry in the power transmission development business. It currently remains as the only power transmission asset owned by L&T.

Also read: New Rail Bridge To Help NTPC-Kudgi Cut Coal Transport Cost, Time
Power generation

L&T owns a 2×700-mw supercritical power plant at Rajpura in Punjab. This coal-fired asset located in Patiala district has been running since 2014 and is understood to be the mainstay of Punjab’s power supply.

Metro rail

The Hyderabad metro rail, which L&T has developed in the public-private partnership (PPP mode, is till date the largest PPP project in the metro rail sector. The project is owned by L&T Metro Rail (Hyderabad) Ltd, a wholly-owned subsidiary of L&T-IDPL. The project was awarded to L&T under a 25-year concession agreement signed on September 2010, to be developed in the DBFOT mode.

 

Exited business

Over the years, L&T has been divesting its stake in various “developer” assets. It has sold its equity stake in Bangalore International Airport Ltd, apart from several road projects, a water supply project, etc.

 

(Featured photograph is for representation only)

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