Larsen & Toubro (L&T), an engineering, technology and construction company, has teamed up with Befula Investments to capitalize on the power transmission and distribution (T&D) opportunities in South Africa.
For this purpose, the companies have signed an agreement to incorporate a joint venture company – Larsen & Toubro T&D SA.
The companies will collaborate on areas including turnkey execution of power transmission lines, sub-stations, rural electrifications, power distribution and industrial electrification.
L&T said that South Africa’s installed capacity is close to 44,000MW and the current peak demand shortage in the country is approximately 3,000MW, which is expected to grow 6% every year.
There is a necessity of huge generation capacity additions, and sizeable investments are lined up by the government to cater to major generation capacity addition and augmentation of transmission and distribution network in the next five years, the company added.
Befula Investments is an engineering and investment company based in South Africa.