BackL&T zooms after arm bags Delhi-Meerut elevated rail section contracts
The project entails executing a new, dedicated, high-speed, high-capacity rail system in the Delhi-Ghaziabad-Meerut corridorL&T's classifies 'significant' order as those between ₹1,000 crore and ₹2,500 crore.
PremiumMumbai: Shares of Larsen & Toubro (L&T) gained over 7% on Wednesday after L&T Construction bagged "significant" contracts for its heavy civil infrastructure business.
L&T shares ended at ₹880, up 1.7% from their previous close. The stock has been rising for six consecutive trading sessions. It gained 16.64% in April.
The civil infrastructure business of L&T Construction secured two contracts to build a regional rapid transit system (RRTS) from National Capital Region Transport Corporation (NCRTC) in Uttar Pradesh.
The scope of the project is to execute a new, dedicated, high-speed, high-capacity rail system in the Delhi-Ghaziabad-Meerut corridor. An RRTS is distinct from a metro transit system as it caters to passengers travelling relatively longer distances with fewer stops and at higher speed. The design speed for the project is 180 kmph with an average operational speed of 100 kmph.
SV Desai, senior vice-president and Head - Heavy Civil Infrastructure IC, L&T Construction, said "We are delighted to have been entrusted with the responsibility to develop this unique project, a first-of-its-kind for India, which is a reaffirmation of our proven capability to build faster and reliable mass transit systems that are in sync with our strategic goal of aiding rapid transportation infrastructure development."
The two contracts for the RRTS have been secured for packages starting from Duhai to Modi Nagar and from Modi Nagar to Shatabdi Nagar for a total distance of 32 km viaduct, including seven elevated stations. These contracts have been bagged amid stiff competition and are breakthrough projects.
According to L&T's classification, the valuation of the 'significant' order stands between ₹1,000 crore and ₹2,500 crore. The disclosure was made during market hours on Wednesday.
L&T is an Indian multinational company engaged in technology, engineering, construction, manufacturing and financial services.
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