Rs 10,000 Crore Power Project Puts This Engineering Stock in Focus

Larsen & Toubro’s Energy CarbonLite Solutions business has received a limited notice to proceed from DVC CIL Power Private Ltd for the main plant package of the 2 x 800 MW Chandrapura thermal power project in Jharkhand.

The order has been classified by L&T as ‘Major’, indicating a value between Rs 5,000 crore and Rs 10,000 crore. The contract is significant for L&T’s conventional energy business, although it remains conditional on project clearances and conversion into a full notice to proceed.

DVC CIL Power is a joint venture between Damodar Valley Corporation and Coal India Ltd. The joint venture will issue the notice to proceed after obtaining the required environmental clearances and after completion of the limited notice period, L&T said.

The Chandrapura plant will have a total installed capacity of 1,600 MW through two 800 MW ultra-supercritical units. L&T’s scope includes design, engineering, manufacturing, supply, erection, testing and commissioning of boilers, steam turbines, generators and electrostatic precipitators. It also covers associated mechanical, electrical, control and instrumentation systems, besides civil works.

At the stated order-value range, the project is equivalent to around 1.7 per cent to 3.5 per cent of L&T’s FY26 consolidated revenue from operations of Rs 2,85,874 crore. The eventual execution of the project would therefore provide a meaningful addition to the group’s already sizeable power and energy order pipeline.

The development also follows stronger execution in L&T’s conventional energy business during the June quarter of FY27. The company had reported 14 per cent year-on-year revenue growth in its Energy Conventional segment, driven mainly by higher execution in CarbonLite Solutions. However, new order inflow in the segment had declined during the quarter due to deferred awards and a high base from earlier CarbonLite Solutions wins.

The Chandrapura award could help address that gap in fresh ordering, though the timing of full mobilisation will depend on environmental approvals. This qualification is important because an LNTP allows preliminary work and does not represent an unconditional full project commencement.

L&T said ultra-supercritical technology would improve thermal efficiency and lower specific emissions compared with conventional coal-fired generation. The project highlights the continuing role of high-efficiency thermal capacity in India’s electricity mix as industrial expansion and economic activity raise baseload power requirements.

T Madhava Das, Senior Executive Vice President and Whole-time Director for Energy Hydrocarbon at L&T, said the limited notice reinforced the company’s position in the thermal power sector and expanded its association with public-sector power utilities.

The order also sits alongside L&T’s broader energy portfolio, which spans conventional thermal and hydrocarbon projects as well as offshore wind, green hydrogen and Solar-related businesses. Its total Order Book stood at about Rs 7.79 lakh crore at the end of the June quarter of FY27, providing multi-year execution visibility across infrastructure, energy, manufacturing and services.

As of 10:30 am on October 7, 2026, L&T shares were trading at Rs 3,750, down 0.61 per cent from the previous close of Rs 3,773. The stock was about 15.1 per cent below its 52-week high of Rs 4,417.15, while its one-year gain of 3.14 per cent compared favourably with a 4.54 per cent decline in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.