L&T eyes Rs 5,000 crore monorail project in Gujarat

After bagging contract for the country’s first monorail in Mumbai, construction major Larson & Tubro (L&T) is now eyeing a similar project in Gujarat.

A memorandum of understanding (MoU) to this effect is likely to be signed at the upcoming Vibrant Gujarat 2011 Summit, state government sources said.

“L&T has expressed interest in a Rs 5,000 crore monorail project in Gujarat. The company will sign an MoU for the same during Vibrant Gujarat,” said company sources.

After tasting success with the Bus Rapid Transport System (BRTS) in Ahmedabad, the Gujarat government has been working on a wholly-elevated metro rail project between Ahmedabad and Gandhinagar at an estimated cost of Rs 7,000 crore. The state government has also set up a Rs 200-crore company for execution of the Metro Link Express for Gandhinagar and Ahmedabad (MEGA), apart from roping in Delhi Metro Rail Corporation (DMRC) to prepare a detailed project report (DPR) for the metro rail project.

With an average 50,000 people commuting between Ahmedabad and Gandhinagar daily, the project is expected to ease rising congestion on the route.

During his last Budget speech, Finance Minister Pranab Mukherjee had proposed to grant project import status to monorail projects for urban transport at a concessional basic duty of 5%

Meanwhile, L&T and Scomi Rail of Malaysia are likely to finish the first portion of the first line of the Mumbai Monorail, contracted by the Mumbai Metropolitan Region Development Authority (MMRDA).