L&T to Phase Out Outdated Construction Equipment and Boost Biodiesel Use

24 Jul 2024 CW Team

Larsen & Toubro (L&T) is set to gradually phase out outdated construction equipment and increase the use of biodiesel as part of a comprehensive strategy to reduce its long-term carbon footprint, according to Anup Sahay, head of corporate strategy at L&T.

As part of this initiative, L&T aims to replace construction equipment older than fifteen years, with specific targets assigned to various divisions. The company owns 14,000 pieces of construction equipment, primarily powered by diesel fuel, which also drives generator sets on construction sites.

"65% of our emissions come from diesel. Our goal is to increase the percentage of biodiesel in the fuel mix to 30%," Sahay stated. The construction division, which contributes 85-90% of L&T?s independent income, recorded revenue exceeding ?1,31,000 crore for the fiscal year 2023?2024.

L&T operates more than 500 active construction sites at any given time. To address emissions, the company has established two task forces: one to examine diesel use and another to explore shifting electricity use to renewable energy sources. During the 2023-24 fiscal year, L&T reduced its fuel consumption by 8%.

L&T's five-year plans, initiated in the 2020?2021 fiscal year and set to conclude in the 2025?2026 fiscal year, aim to significantly reduce carbon emissions. However, Sahay cautioned that India's transition to a reduced carbon footprint will take time. "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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