L&T to Modernize Construction Fleet with Equipment Phase-Out

23 Jul 2024 , 09:56 AM

According to a top executive, Larsen & Toubro will gradually phase out outdated construction equipment and use more biodiesel as part of a multifaceted campaign to lower its long-term carbon footprint.

Additionally, the strategy calls for its production sites to switch from thermal coal to power produced from renewable sources.

“We intend to gradually phase out construction equipment that is older than fifteen years.” Various divisions have been set targets,” stated Anup Sahay, head of corporate strategy at L&T, to ET.

14,000 pieces of construction equipment are owned by L&T. The machinery is powered by diesel fuel. On its building sites, it is also utilized in generator sets.

“65% of our emissions come from diesel. Our goal is to increase the percentage of biodiesel in the gasoline mix to 30%,” he stated.

85–90% of L&T’s independent income come from its construction division. For the fiscal year 2023–2024, its income on its own exceeded ₹1,31,000 crore.

More than 500 building sites were active at any given time, according to Sahay.

Two task forces have been established. Examining diesel use comes first. The second will examine ways to shift electricity use to renewable energy sources,” he stated. According to Sahay, during the 2023–24 fiscal year, Larsen & Toubro’s fuel consumption decreased by 8%.

Five-year plans have been developed by Larsen & Toubro to reduce carbon emissions. The first of these programs was initiated in the 2020–2021 fiscal year and is scheduled to be completed in the 2025–2026 fiscal year.

He forewarned that it will take time for India to fulfill its ambitions to minimize its carbon footprint. “It will be many decades before we can bring down the share of fossil fuel or thermal coal to 25-30% in India’s energy mix”, he stated.

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