Larsen & Toubro expects bulging order book

Betting big on the new government's initiative to clear major infrastructure projects which were stuck, engineering major Larsen & Toubro said that it expects to bag a number of construction deals.
"We will see some new changes only after next April as the new government is currently focused on clearing the low-hanging fruits. These are those projects which had been pending for quite some time now and we expect them to come up for bidding soon," L&T Chairman A M Naik told reporters on the sidelines of its 69th Annual General Meeting.
He said the company is eyeing contracts worth Rs 20,000 crore from the Dedicated Freight Corridor Corporation (DFCC) apart from the 2,800 mw (4x700 mw) Gorakhpur nuclear power project in Haryana as well as some contracts in the water and affluents segment.

"L&T has already bagged orders worth Rs 6,700 crore from the DFCC to construct a double-track corridor from Rewari in Haryana to Iqbalgarh in Gujarat. Three other contracts worth around Rs 20,000 crore are expected to be bid out soon. We believe L&T will bag all the three contracts," Naik said.
About its prospects in the nuclear sector Naik said, "The proposed 700-mw pressurised heavy water reactors will be indigenously developed. So there will be no hurdles of international safety norms. We expect bids to be out by the end of the year".
He also said the company is looking at certain airport projects as well.

Though he expressed optimism, Naik said that the main issue is where will funds come from.
"The government is giving clearances to projects, but the main issue is where will the money come from. If we have to get international funds, we will have to make changes in policy by ensuring at least eight to nine per cent return on investment for foreign investors. This will attract foreign investors to invest in the country," he said.