L&T Bags Rs 10,000 -15,000 Crore Contract For Mumbai-Ahmedabad High-Speed Rail Project, Shares Up 1%

Larsen And Toubro Ltd shares traded higher on Tuesday after the company informed that the Railways Strategic Business Group of L&T Construction has secured a Mega Contract from an authorised Japanese agency to construct 508 Route Km of High-Speed Electrification System Works for the Mumbai-Ahmedabad High-Speed Rail (MAHSR) Project, popularly referred to as the Bullet Train Project. The company classifies Mega Contract as the one with a valuation of 10,000 to 15,000 Crore.

L&T shares were up 1% at Rs 3577.85 per share at 11:22 am IST Today.

According to the company, it is a first-of-its-kind railway electrification project for India involving the implementation of Japanese Shinkansen High-Speed Electrification Technology with sophisticated equipment including Heavy Compound Catenary System, Change Over Switches etc. Upon completion, this electrification system will enable trains to travel at speeds of up to 320 KMPH.

Talking in detail about the project, the company states that the scope of this package includes the Design, Manufacture, Supply, Construction, Installation, Testing, and Commissioning of 2 x 25 kV Power Supply Electrification System including Traction Substations, High-Speed Overhead Equipment and MV/LV Power Distribution Equipment Works on Design-Build Lump Sum Price basis.

This project is being funded by Japan International Cooperation Agency (JICA) and is being implemented by an authorised Japanese agency acting for and on behalf of National High-Speed Rail Corporation Ltd (NHSRCL).
L&T is currently executing various electrification projects in India and abroad including Mauritius LRT, Dhaka Metro, Western & Eastern DFCCs, Mumbai Metro, Agra Metro, Chennai Metro and Indian railway projects. It has earlier successfully delivered various Electrification Projects for Indian Mainline Railways and Metros. The company is also executing several Civil Viaduct, Station Packages, Track & Depot Packages and Special Steel Bridges Packages for the Mumbai-Ahmedabad High Speed Rail (MAHSR) project.

Commenting on this win, L&T Chairman & Managing Director Mr S N Subrahmanyan said "This MAHSR Systems Package is critical for the success of the Bullet Train Project. Proud to say that this win shall place L&T's Railways Business amongst the top global Railway System Integrators covering Mainline, Metro and High-Speed Rail segments. This success on top of the earlier Trackworks & Civil Packages reflects the customer's and the Japanese government's huge trust on L&T's design and execution capabilities. Realization of MAHSR Project will change the paradigm of long-distance transportation in the country."

About L&T:

Larsen & Toubro is a USD 23 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.

L&T share price performance:

In the last six months, L&T shares have gained 43.81%. The last one year, 2-year and 3-year returns from the stock have increased 66.35%, 73.95%, and 162.58 respectively.