Larsen & Toubro has received a Limited Notice to Proceed for a 1,600 MW thermal power project in Jharkhand, commissioned by a joint venture of Coal India and Damodar Valley Corporation. The order, estimated between ₹5,000 crore and ₹10,000 crore, marks a significant addition to the company's energy order book. Investors may monitor the project's conversion into a full contract, which depends on pending environmental clearances.
Larsen & Toubro (L&T) has been selected to develop a major thermal power project in Chandrapura, Jharkhand. The company's specialized unit, L&T Energy CarbonLite Solutions, received a Limited Notice to Proceed (LNTP) for the project. This infrastructure development is being managed by DVC CIL Power Private Ltd, which is a joint venture between state-owned Coal India and Damodar Valley Corporation.
The project involves the design, supply, and construction of two 800 MW units, bringing the total capacity to 1,600 MW. The plant will use ultra-supercritical technology, which is designed to operate with higher efficiency compared to older thermal plants, helping to manage fuel consumption and emissions. L&T's responsibilities cover the full lifecycle of the main plant package, from engineering and equipment manufacturing to final commissioning.
From a financial perspective, the order is classified by the company as a 'major' project, with a value estimated between ₹5,000 crore and ₹10,000 crore. This project represents roughly 1.7% to 3.5% of L&T's annual consolidated revenue based on recent financial periods. The addition of this order is part of L&T’s broader effort to expand its power infrastructure business, which continues to see demand despite the global shift toward renewable energy.
While the contract is a positive sign for order growth, it is currently at the Limited Notice to Proceed stage. This means the project is subject to certain conditions, specifically the receipt of final environmental clearances. Investors may track the transition of this project from the preliminary LNTP stage to a full Notice to Proceed, which would officially signal the start of full-scale construction. Delays in obtaining regulatory approvals can often push back project timelines, which is a common risk for large-scale infrastructure work in the thermal power sector.
On the stock market, L&T shares traded slightly lower by approximately 0.6% to 0.75% on October 7, 2026. This minor movement suggests that while the order adds to the company's long-term backlog, the market is also considering execution risks and the current environment for thermal power investments. For shareholders, the key monitorable will be the company’s ability to secure clearances without significant delays and manage raw material costs—such as steel and copper—that can impact the profit margins on large engineering and construction contracts.