Larsen & Toubro and the Nuclear Power Corporation of India say they are going to construct a forgings plant at Hazira in Gujarat, India.
The forgings plant will produce equipment and components for energy projects, including nuclear and thermal power plants and hydrocarbon units, according to news service Bloomberg.
Besides reducing production costs and mitigating delays, the plant will allow them to export nuclear equipment, thereby improving India’s capability in the sector.
Larsen & Toubro chairman and managing director A.M. Naik told Bloomberg the two companies will spend $377m on the forgings plant.
The company says it intends to benefit from India’s plans to increase its atomic generation capacity following the lifting of the nuclear trade ban in 2008 and signing of the nuclear deals with the US and other nations.
The plant will become operational in 2011 and exports are expected to begin by 2013.
India’s current nuclear power generation capacity of 4,120MW accounts for 3% of the total generation.