Project Report on L&T- A Case Study on India's Infrastructure Industry-Larsen &Toubro
Major developments in India's infrastructure industry
■ In
May 2013, the Japanese government expressed interest in partially financing the
US$9.8bn Mumbai-Ahmedabad high-speed railway project. The Japanese government
will provide a loan of around US $1.0bn and the project will use Japanese
bullet train technology for the project.
■ In
June 2013, a joint-venture consisting of Larsen & Toubro and Sojitz
secured a INR66.99bn (US $1.15bn) contract to a 626km double-track section of
the Western Corridor. The double track-line will be built from Rewari in
Haryana to Iqbalgarh in Gujarat, via Rajasthan. Funding for the project will be
provided by Japan International Cooperation Agency.
■ In
July 2013, the aviation ministry announced that it has decided to privatise 15
airports, with the first phase involving the international tendering of six
airports - Chennai, Kolkata, Lucknow, Guwahati, Jaipur and Ahmedabad - under a
PPP format. AAI will still have a stake in these airports.
■ In
August 2013, state-owned enterprise Indian Railways issued a new request for
qualification (RFQ) document for the elevated rail corridor project between
Churchgate and Virar in the Indian state of Maharashtra. The new document for
the 60km-long project has been issued with noticeable alterations in terms and
conditions. The project cost has been revised to INR215bn (US$3.43bn), while
the new elevated corridor would be a standard gauge instead of a broad gauge.
Six companies, including Reliance Infrastructure, Gammon, Larsen
& Toubro,
Infrastructure
Leasing & Financial Services and GMR that have earlier
submitted RFQ for the project, would be required to re-submit their bids.
■ In
August 2013, India's Mumbai Metropolitan Region Development Authority (MMRDA)
announced that it had not received any bids from the five consortia shortlisted
for the Mumbai Trans Harbour Link (MTHL) project worth INR96.3bn (US$1.5bn).
The bids were required to be submitted by August 5 2013. A consortium,
comprising IRB Infrastructure and Hyundai E&C, had already
announced its intention to withdraw from the race on the grounds of lack of
support from the state government of Maharashtra. Other bidders have also
claimed that the project has been delayed unnecessarily due to complex
clearance procedures, reports local sources.
■ In
August 2013, the Indian government proposed an expansion plan to construct 17
new airports in 11 states across the country. The plan has been proposed in the
government's twelfth five year plan for 2012-2017. The proposed airports are
located in Karnataka (Gulbarga, Bijapur, Hassan and Shimoga), Goa (second
airport in Mopa), Kerala (fourth airport in Aranmula), Arunachal Pradesh
(Itanagar), Rajasthan (Kishangarh) and Jharkhand (Deoghar).
Lacklustre Infrastructure Activity
Besides monetary
issues, the poor economic conditions in 2012-13 and the structural problems
within the various infrastructure sub-sectors (transport and utilities
infrastructure) have also deterred investors from taking on new projects and
deterred financers from providing funds to carry out construction works. This
is highlighted by the sharp decline in the value of new projects launched in
India. According to data from Centre for Monitoring Indian Economy (CMIE), the
number of new projects approved in recent quarters is at its lowest since 2004
and this dampens the potential for infrastructure activity in FY2013/14 and FY2014/15.
A key example is the recent tender for the 22km Mumbai trans-harbour link,
where none of the
five shortlisted
consortia bidded for the INR100bn (US$1.6bn) project.
If you want to
write swot analysis on Larsen Toubro L&T or Projects Reports on India’s Infrastructure Industry, than read CaseStudies on Infrastructure Development and read papers on Infrastructure from research library. Also read Constraints and Recommendation in Financing Infrastructure PPP Projects in India.
