Mumbai-Ahmedabad rail project: L&T bags ₹10,000-cr order; stock up

Shares of Larsen & Toubro (L&T) rose over 1.1% in the early trade today after the company secured a mega order to build electrification system for the Mumbai-Ahmedabad High-Speed rail (MAHSR) project in India.

L&T said it has won an expansive contract from a Japanese agency. This undertaking entails the construction of 508 route kilometres of high-speed electrification works. The project involves crafting an electrification system for the Mumbai-Ahmedabad high-speed rail (MAHSR) project in India. With a valuation ranging from ₹10,000 crore to ₹15,000 crore, it is the first of its kind of railway electrification project for India, the company states.

The electrification venture, upon its completion, is poised to propel trains to unprecedented speeds of up to 320 kilometres per hour (KMPH), redefining the standards of high-speed rail travel in the country.

“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.,” the company says.

The financial impetus for this project is provided by the Japan International Cooperation Agency (JICA) and is presently orchestrated through the auspices of an authorised Japanese entity, serving as the executor on behalf of the National High-Speed Rail Corporation Ltd (NHSRCL).

S.N. Subrahmanyan, L&T chairman & managing director 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. Realisation of MAHSR Project will change the paradigm of long-distance transportation in the country.”

Rajeev Jyoti, advisor to chairman & MD for railways business says, “This is the largest single railway electrification project order ever placed in India. Our Railways Business is now in a unique position to leverage our strengths in design, procurement, construction capabilities as well as our relationship with various Japanese stakeholders for successful execution. The experience & technology transfer from this project shall help L&T in developing credentials for such future High Speed Rail projects in India and abroad.”

Notably, L&T's involvement extends beyond the MAHSR project, as the conglomerate is currently at the helm of various electrification endeavours both within India and abroad. It includes projects such as the Mauritius Light Rail Transit (LRT), Dhaka Metro, Western & Eastern Dedicated Freight Corridors (DFCCs), Mumbai Metro, Agra Metro, Chennai Metro, and various railway initiatives within India. 

It has earlier successfully delivered various electrification projects for Indian Mainline Railways and Metros.

“L&T is currently executing several Civil Viaduct, Station Packages, Track & Depot Packages and Special Steel Bridges Packages for the Mumbai-Ahmedabad High Speed Rail (MAHSR) project,” it adds.