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Company Introduction:-

Electrical & Automation is a major business portfolio of Larsen & Toubro. The business
basket of Electrical & Automation (E&A) contains low and medium voltage switchgear
products, electrical systems, energy meters and automation solutions. Its products and
solutions cater to industry, utility, building & home, infrastructure and agriculture
segments.

L&T Control and Automation (C&A) which is the Projects SBG and offers a wide range of
low and medium voltage switchgear, electrical systems, marine switchgear, industrial and
building automation solutions, energy management systems and metering solutions. Its
products and solutions cater to a variety of segments like industries, utilities,
infrastructure, building and agriculture.

The Control & Automation business of L&T offers integrated Electrical & Automation
solutions for Oil & Gas, Cement, Metal and other Manufacturing industries, Infrastructure as
well as utilities like Power and Water. We have experience of over four decades in diverse
segments and proven capabilities across the entire value chain - comprising Proposals,
Design, Engineering, Project Planning, Integration, Software Development, Integrated
testing / FAT, Commissioning / SAT and After-Sales Service.

Political factor:-

1)L&T C&A has developed expertise on the engineering design of the automated bottling
plants soon after the present Central Government announces our Prime Minister Narendra
Modi’s flagship project Pradhan Mantri Ujjwala Yojana (PMUY) in 2016. This scheme is set
to provide free cooking gas connections to 50 million users before 2019 Loksabha elections.
At present it covers around 47.3 million consumers in 715 districts of India.
Moreover in last Union budget government has decided to increase the scheme to 80
million consumers.
Oil marketing companies such as Indian Oil Corporation (IOCL), Hindustan Petroleum
Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) are speeding up the process
to achieve the target before elections by automating the existing 180 bottling plants and by
expanding new automated bottling plant by around 100.

In the last financial year and up to last quarter of this financial year L&T C&A has bagged
fresh automated LPG bottling plant orders from IOCL, BPCL and HPCL of around 300 crores.
And most of the projects deadlines are before March 2019 with immense pressure from
Government for completion which results in excellent cash inflow in our financial account
statements.

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2) L&T C&A previously has a different power vertical which was responsible for the design,
supply, installation and commissioning of the Distributed Control System (DCS) package for
the Thermal Power Plants with joint venture with Mitsubishi Hitachi Power Systems
(MHPS), Japan.
Still 2014 L&T successfully commissioned 2400 MW coal based thermal power plants
projects including some Super Critical thermal power plants like Rajpura, Punjab.
After the Supreme Court verdict in 2014 which cancelled 214 of 218 coal block allocations
to various private companies since 1993, calling the whole process of coal allocation as
"fatally flawed, non-transparent and arbitrary". This decision badly effects many PSUs like
NTPC, SAIL and other private players also. L&T C&A along with L&T Power forced to shut
down 700 MW unit 1 of Rajpura plant due to coal shortages and other upcoming projects of
573 GW was cancelled due to the coal allocation. Also lack of long-term power purchase
agreements (PPAs) and delays in land acquisition resulting in cost overruns were some of
the other key issues which the power sector is facing.
L&T C&A forced to close down the power division vertical due to low order bookings of the
coal based power plants.
Due to the above reasons solar based power plants evolved in India and is expected to
produce 100 GW power till 2022 in order to compensate the shortages emerges due to the
coal based thermal power plants.
L&T C&A made a separate solar based power plant division and presently executing 600
MW projects for various private players like ACME, HERO etc. Total expected order
bookings from solar division is expected to achieve a mark of 800 crores in next financial
year.

Role of Technology:-

In earlier days and in present days also we use Analogue Energy Meters for the track of
electricity consumption in consumers home and in other commercial areas. Electricity
board’s representatives use to take readings of the consumption manually each month and
use it for the billing purpose.
With the evolution of the Smart electric meters which have electronic devices that track and
record the use of electricity in customers' homes, electric utility companies have been
replacing the outdated analogue meters (that are read manually each month) with the new,
high-tech digital smart meter versions. These smart meters automatically capture
information about electricity consumption and then transmit it back to the electric
company.
Smart meters can provide quick, accurate measurements of electricity use while
eliminating the need for estimated monthly bills or home visits from meter readers.

L&T C&A with collaboration with Metering and Protection Systems (MPS) Division, who are
the pioneer in the Smart Enegy Meters are presently executing various projects like “IoT
Based Smart Energy Meter” for Smart City Indore, Bhubneshwar etc.

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These meters are Wifi or RF based meters which uses GSM technology as the heart of the
IOT based system. Also HTML pages are being developed in order to see the ongoing
consumption of electricity so that consumer can control the monthly bills accordingly.
With the evolution of these technology L&T C&A has booked order of Rs. 577 crores which
is in line with Smart City Mission, is an urban renewal and retrofitting program by the
Government of India.

Sources:-

1)https://www.thehindubusinessline.com/money-and-banking/pmuy-a-feather-in-the-
cap-for-dharmendra-pradhan-and-his-team/article24609118.ece
2) http://ieefa.org/india-coal-plant-cancellations-are-coming-faster-than-expected/
3) https://www.tribuneindia.com/news/business/l-t-shuts-700-mw-unit-of-rajpura-
thermal-plant/601795.html

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