L&T is joining the green hydrogen business in India
What's the story
Leading engineering and construction company, Larsen & Toubro (L&T), has announced the establishment of a new wholly-owned subsidiary called Panipat Green Hydrogen Pvt Ltd. The move is part of L&T's strategy to develop green hydrogen projects and conduct other related business activities. The company made the announcement in a filing with stock exchanges in India today.
Financial stability
Fitch affirms L&T's ratings at 'BBB+'
In a separate filing, L&T announced that Fitch Ratings has affirmed its long-term foreign as well as local currency issuer default ratings (IDRs) at 'BBB+.' The affirmation indicates the company's financial stability and strength in the market. The outlook on these ratings is stable, further emphasizing L&T's solid position in the industry.
Strategic acquisition
Land acquisition in Gujarat
Earlier, L&T had revealed that it acquired a land parcel in Kandla, Gujarat. The site will be used for developing green hydrogen and green ammonia projects. The strategic move comes as part of the company's efforts to tap into growing demand for sustainable energy solutions.
Policy support
Centre promoting green hydrogen as clean energy source
The Indian government is actively promoting green hydrogen as a clean energy source. The push comes through initiatives like the National Green Hydrogen Mission and pilot projects aimed at its use in transportation. This policy support aligns with L&T's new subsidiary's focus on developing green hydrogen projects, further strengthening India's position in the global sustainable energy landscape.