Larsen & Toubro (L&T), one of India’s largest multi-national firms, has recently announced that it has won an order from the Madhya Pradesh government, for the execution of the Kundalia Irrigation Project. The project, awarded to L&T’s construction arm, is valued at Rs 1,394 crores, sources familiar with the matter confirmed.
The company announcement specified that L&T Construction’s water and effluent business has bagged the Rs 1,394 crore worth EPC order from the Madhya Pradesh government’s Water Resources Department. This would be the fourth order that L&T has won from the same client, the company had mentioned.
It has been speculated the project has been developed to ensure water supply for micro-irrigation activities carried out across more than 64,000 hectares of cultivable land in Madhya Pradesh’s Rajgarh district. It would involve lifting up water from Right Bank of the Kundalia reservoirs on the Kalisindh river.
The announcement comes after L&T Construction had recently won a large order from GMR Hyderabad International Airport in early August, records indicate. The Rs 3,028 order comprises of executing and implementing the engineering, procurement and construction related to the expansion of airside infrastructure and the terminal building at Hyderabad’s Rajiv Gandhi International Airport.
The venture had been termed as a brownfield airport expansion project which is to be completed within a strict time frame, company reports suggested. It further emphasized that the project, expected to increase the airport’s annual passenger handling capacity to 34 million, would help to reiterate the EPC capabilities of L&T in building brownfield airport infrastructure.
According to market reports, L&T shares were trading at about Rs 1,354 per share at the time the MP irrigation deal was announced, which is a 0.83% rise over the previous day closing price on BSE.