NEW DELHI, Dec 23: Larsen and Tubro (L&T) is negotiating with Coal India Limited (CIL) and Indian Railways to acquire fuel linkages for its Rs 2,500 crore power project.

The negotiations would be completed in about two to three months and the company can achieve financial closure for its proposed 500 MW coal based plant, chief executive and managing director SD Kulkarni said.

L&T has already got techno-economic clearance (TEC) from the Central Electricity Authority (CEA) and all other necessary clearances for setting up the proposed project, he said.

The company has signed the power purchase agreement (PPA) with Madhya Pradesh Electricity Board for its power plant at Bhilai.

Public sector Steel Authority of India Limited (SAIL) is a joint venture partner with minority stake of about five per cent in the project and the rest with L&T and American firm Community Energy Alternative (CEA), he said adding that L&T is a majority holder in the project.

The managing director of Bhilai Steel Plant (BSP), a unit of SAIL, V Gujral said corporation's objective of entering into the joint-venture is to meet the power requirement of the plant.

"Power plant will help us in self-sufficiency for power as our captive power plant is unable to generate the required power," he said.

BSP has a captive power plant with generation capacity of 100 mw."Another hurdle in going ahead with the project is the escrow account which the financial institution wants,'' Gujral said.