Larsen & Toubro wants to make the most of govt’s increased focus on highways

The Indian government is planning to double the length of country’s highways and Larsen & Toubro is eying this as a great opportunity.

L&T wants to focus on EPC (Engineering, Procurement and Construction) projects as the government has bid out 31 projects worth Rs 28,000 crore under the EPC model.

In a presentation to investors, L&T has listed the "increased road build-out by NHAI with current focus on EPC (engineering, procurement and construction) projects" as "opportunities".

The infrastructure major saw its bottom-line surge 19 per cent to Rs 1,034.8 crore in October-December.

L&T also eyes "expressway projects by state governments, elevated corridors and ring roads in major cities" as some of the other opportunities in the investor presentation besides dedicated freight corridor programme and highway projects in the Middle East.

As for challenges in the infrastructure segment, it has listed "investment constraints, lending capacity of banking system, lack of private sector interest in PPP projects, land acquisition, government funding, environmental clearances, slow evolution of policy frameworks, pace of awards and execution."

L&T's road and bridges portfolio has 16 projects for 1,721 km worth Rs 17,800 crore.

(Image: Indiatimes)