A Limited Notice To Proceed (LNTP) is a legal document that allows a contractor to start specific early project tasks before the final main contract or full funding is ready.
L&T classifies orders in the ₹10,000 crore to ₹15,000 crore range as “mega” orders.
L&T said it secured the LNTP from NTPC for the main plant package of the 2×800 MW Lara Stage III thermal power plant in Chhattisgarh. The notice to proceed will be granted once the project secures environmental clearance and the LNTP period is completed, it said.
The project entails the construction of two 800 MW ultra-supercritical generating units. L&T’s scope encompasses the design, engineering, manufacturing, supply, erection, testing and commissioning of boilers, steam turbines, generators, electrostatic precipitators (ESPs), air cooled condensers (ACC) and their auxiliaries, along with associated mechanical, electrical, control and instrumentation and civil works, the company said.
The tasks will be issued on an engineering, procurement and construction (EPC) basis using ultra-supercritical technology, which offers higher efficiency and lower specific emissions, L&T said.
Once commissioned, the plant will add 1,600 MW of reliable baseload generation capacity to India’s grid, it added.
“This award is our third ultra-supercritical project from NTPC in the past two years, reflects the trust that India’s largest power utility continues to place in our engineering, manufacturing and project execution capabilities,” T Madhava Das, whole-time director, sr executive vice-president and head – energy hydrocarbon division, L&T, said.
Fifth consecutive day of order announcement
L&T’s order on Thursday is its fifth consecutive day of order announcements.
On Wednesday, it won a “major” order in the ₹2,500 crore to ₹5,000 crore range. On Tuesday, the company secured an “ultra-mega” order worth at least ₹15,000 crore, on Monday it won a “major order in the ₹5,000 crore to ₹10,000 crore range and on Friday it secured another “large” order. Last week on Monday, it won another “mega” order.
L&T Results
L&T reported mixed June quarter earnings, with its EBITDA missing estimates. However, its order inflow delivered a positive surprise.
The L&T management held on to its guidance for this fiscal.
Two of the 33 analysts who have coverage on the stock see it rising up to ₹5,000.
Shares of Larsen & Toubro are trading 0.6% lower on Thursday at ₹3,915.7. The stock is down 5.5% so far this year.
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