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)
