MHI Receives Two Orders from India for Core Components

MHI received the two orders through L&T, India's largest construction and heavy machinery company, and two joint venture companies established by L&T and MHI in 2007: L&T MHI Boilers Private Limited (LMB) and L&T MHI Turbine Generators Private Limited (LMTG). LMB and LMTG are respectively responsible for boilers and turbine generators. MHI will manufacture the core components of the boilers and turbines, including pressure-containing boiler components and steam turbine rotors, and supply them to the two companies. Mitsubishi Electric Corporation is responsible for generators.

Construction of the supercritical-pressure coal-fired power plant in Rajpura, Punjab, is part of a power generation capacity expansion program of Punjab State Power Corporation Ltd. (PSPCL, formerly Punjab State Electricity Board) to ease electricity shortages in eastern Punjab, where rapid growth of manufacturing industries continues. Nabha Power Limited, a subsidiary of L&T , has already signed a power purchase agreement (PPA) with PSPCL.

The power plant to be built in Karchana, Uttar Pradesh, is similarly part of that state's power generation capacity enhancement program. Sangam Power Generation, which is based in Lucknow, the state capital, is a subsidiary of Jaiprakash Power Ventures Ltd. (JPVL), an affiliate of the Jaypee Group, an infrastructure conglomerate in India. This is the second boiler/turbine set order placed to LMB and LMTG for JPVL's power plants.

Through the two JVs with L&T, to date MHI has received 4 orders for a total of 10 boilers and 5 orders for 12 steam turbines. The new manufacturing plants of both JVs have already commenced full-scale operation.

Going forward MHI will continue aggressive marketing activities for its high-efficiency supercritical-pressure boilers and turbines in India together with its two JVs and L&T. Through these activities and products the company looks to contribute both to stable electricity supplies and to global environmental protection efforts, including reduction of CO2 emissions. Note: Supercritical turbines are engineered to operate at steam pressures above water's critical point: 22.1MPa (about 220 times greater than normal atmospheric pressure) and 374.2°C (705.2°F/647.15°K). In actual use, they will operate in an environment of about 250 atm.