L&T Lands ₹15,000 Crore Ultra-Mega Thermal Power Contract from Adani Power: CarbonLite Division to Build 6,400 MW Capacity

Unknown Apr 02, 2026 1,050 Views

Larsen & Toubro (L&T) has secured a landmark ₹150 billion (₹15,000 crore) ultra-mega contract from Adani Power to construct thermal power plants with a combined capacity of 6,400 MW. The project will be executed by L&T’s Energy CarbonLite Solutions division, which specializes in low-carbon and high-efficiency energy infrastructure. This marks one of the largest single orders in India’s thermal power sector in recent years and positions L&T as a key player in the country’s energy transition roadmap.

Key Highlights from the Contract Win

L&T awarded ₹15,000 crore ultra-mega EPC contract by Adani Power
Project scope includes 6,400 MW thermal capacity across Madhya Pradesh and Bihar
CarbonLite Solutions division to lead design, engineering, and commissioning
Order classified as ‘Ultra-Mega’ under L&T’s internal categorization
Execution timeline expected to span 42 months, with phased commissioning

Project Scope and Technical Details

The contract covers two major thermal power installations:
Gadarwara, Madhya Pradesh – 2×800 MW Stage-II thermal power plant
Nabinagar, Bihar – 3×800 MW Stage-II thermal power plant

L&T’s scope includes:

Design and engineering of boilers, turbines, and electrostatic precipitators
Procurement and manufacturing of critical components
Civil works, instrumentation, and electrical systems
Full commissioning and performance testing

The plants will deploy ultra-supercritical technology to improve efficiency and reduce emissions, aligning with India’s decarbonization goals.

Strategic Importance for L&T and Adani Power

This contract is pivotal for both companies:

For L&T: Reinforces its leadership in turnkey thermal EPC projects and expands its CarbonLite portfolio
For Adani Power: Accelerates its capacity expansion and supports grid stability amid rising demand
The collaboration also reflects a strategic shift toward cleaner thermal technologies, with CarbonLite Solutions integrating carbon capture readiness and water-efficient systems.

Financial Impact and Market Reaction

L&T’s stock rose 1.92 percent to ₹3,487.80 on the BSE following the announcement, reflecting investor optimism. The order adds significantly to L&T’s order book, which stood at ₹579,137 crore as of March 2025.

Key financial metrics:

Order value: ₹15,000 crore
Expected revenue contribution: ₹3,500 crore annually over next three years
EBITDA margin projection: 9.5–10 percent for the project lifecycle

Analysts expect this deal to boost L&T’s revenue visibility and support margin stability amid global EPC headwinds.

CarbonLite Solutions: Driving Low-Carbon Innovation

L&T’s CarbonLite Solutions division has emerged as a cornerstone of its energy business. It offers:

Turnkey solutions for thermal, gas-based, and nuclear power plants
Carbon capture systems and pump storage hydro turbines
Indigenous manufacturing capabilities at Hazira, Gujarat

The division’s execution of India’s first ultra-supercritical plant at Khargone and its recent LNTP from NTPC for similar projects underscore its technical prowess.

Broader Implications for India’s Energy Sector

The 6,400 MW capacity addition will: