L&T Construction bags contract for Jakarta MRT Phase 2A, shares up

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Larsen and Toubro Ltd’s shares were up 2 per cent after its construction arm’s Railways Business Group secured an order for the construction of the Jakarta Mass Rapid Transit (MRT) Project (Phase 2A), known as Contract Package CP205. The win comes through L&T’s long-term partnership with Sojitz Corporation, a Japanese entity. The contract represents L&T’s inaugural Engineering, Procurement, and Construction (EPC) Railway Systems Order in the ASEAN region.

The Jakarta MRT Phase 2A entails extending the existing Jakarta MRT Line from Bundaran HI to Kota, a distance of approximately 12.5 km and featuring seven underground stations. The project scope encompasses the procurement and delivery of systems across domains, following a design and build approach. Key components include Trackworks, Overhead Contact System, Substation System, Power Distribution System, Signaling System & Telecommunication Systems, SCADA Facility, Platform Screen Doors, and modifications to existing equipment in the OCC and stations/ train sets from Phase-1.

Currently, L&T is executing an integrated Railway Systems project for the Mauritius LRT and Dhaka Metro.

The company said the ASEAN region is poised for railway development in the coming decade, with governments allocating increased budgets for infrastructure projects. Plans to expand urban rail systems in these countries, coupled with growing investor interest, presented opportunities for growth. 

The shares were up by 2 per cent at ₹3,459.20 on the BSE.