In a communication to its shareholders, the company has said it plans to issue the debentures in one or more tranches and it would be placed either on a rights basis or on a private placement basis. L&T has planned expansions of its units, besides setting up a software technology park in Hyderabad. In its cement divison, L&T plans to add another two mmtpa capacity at its Tadapatri plant in Andhra Pradesh at a cost of Rs 1,000 crore.

Company officials say with more stress being placed on the development of the infrastructure sector, and to meet the resultant cement boom, it would have to increase its cement capacity. L&T is one of India's largest cement manufacturers. It has identified infrastructure sector asits focus area. It is setting up power projects, besides doing the EPC work for other companies.