Infrastructure and capital goods major Larsen and Toubro announced it was carving out a separate business vertical for its renewable EPC segment out of its power, transmission & distribution business, which is within its infrastructure projects segment.
At 1.30 pm, L&T shares were in the red, down over a percent at Rs 3,673 per share on the NSE.
In a filing with the exchanges, L&T wrote that the transition towards clean energy has increased significantly over the recent years, with decarbonized electricity being central to the fight against climate change. As a result, the penetration of renewable energy in the global mix, particularly solar and wind generation, is set to increase.
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"There is a strong momentum in India’s pursuit of promoting renewable energy especially towards increasing the share of non-fossil fuels-based electricity. Renewable Energy Implementing Agencies have chalked out clear capacity addition trajectories and several schemes including Green Energy Corridors are being implemented," said the firm in a release.
L&T wrote that the firm is already associated with a series of renewable energy projects across the globe. "L&T is already a leading player globally with a vast portfolio of 22 GWp of renewable EPC experience," said the company.
In this backdrop, to enhance management visibility and to ensure seamless integration of resources and capabilities, L&T has created the Renewable EPC business, an addition to its construction verticals.
SN Subrahmanyan, CMD, Larsen & Toubro said: “This space is promising. Multiple opportunities are visible. We want to capitalize on our success and wish to remain a preferred partner of choice for our customers. Creation of this vertical will give increased autonomy, customer proximity and leadership oversight to the business and enable us to excel in this space.”
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