New Delhi, Sep 23 (IANS) Larsen and Toubro (L&T) has signed a shareholders agreements with South Africa-based Befula Investments to form a joint venture company, Larsen and Turbo T&D SA (Pty) Ltd, to tap power transmission and distribution opportunities in that country.

South Africa, despite having an installed capacity close to 44,000 MW, is facing a severe peak demand shortage of around 3,000 megawatt and this is expected to grow six percent every year. Recognizing this opportunity and to exploit the business potential existing in the country, L&T has signed this agreement, the company said in a regulatory filing Thursday.

Under the agreement the two companies will be collaborating in areas like turnkey execution of power transmission line, sub-stations, rural electrification, power distribution, and industrial electrification in South Africa.

Befula Investments with its associate partners have a wide network access to resource pools for labour and services across multiple sectors including labour sourcing, site location of labour, logistics and supply chain management support.