The infrastructure finance unit of Larsen & Toubro Ltd., India’s largest engineering company, is slowing its lending to coal power projects due to concerns that future water shortages may cause shutdowns.
“We are very, very selective on coal projects,” Suneet K. Maheshwari, chief executive officer of L&T Infrastructure Finance Co., said in an interview in Mumbai. Projects must show ample water and be able to source and transport fuel reliably. “There are very few that have all of these boxes ticked.”
