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  4. L&T wins contracts for floating solar plants and transmission projects, stock gains 2%

L&T wins contracts for floating solar plants and transmission projects, stock gains 2%

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2 min read • Updated: May 8, 2024, 4:49 PM

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Summary

Larsen and Toubro's power transmission and distribution division recently clinched several substantial contracts, including projects for floating solar plants and transmission infrastructure, both domestically and abroad. With a total value ranging between ₹5,000 and ₹10,000 crore, these contracts signify a significant boost for the company.

Larsen & Toubro (L&T).PNG
Larsen & Toubro bags power transmission contracts in India, Kuwait, Oman, UAE

Multinational conglomerate Larsen and Toubro has announced that its power transmission and Distribution division has secured multiple contracts, both domestic and international. Describing these new contracts as ‘major’ in a filing to the bourses on Wednesday (May 8), L&T highlighted that they include projects such as floating solar plants. The company indicated that the contracts have a value of ₹5,000 to ₹10,000 crore.

The stock gained as much as 2.0% on Wednesday to hit an intraday high of ₹3,497.40 a piece on the National Stock Exchange of India (NSE).

L&T said the two floating solar plants have a combined capacity of over 150 MWac. Additionally, the orders include a ground-mounted solar PV system with a capacity of 120 MWac.

Floating solar projects include installing solar modules on floating structures in water bodies such as reservoirs, lakes, or abandoned quarries. Unlike ground-mounted solar installations, floating solar projects eliminate the need for land acquisition and generally entail fewer civil works.

L&T’s power transmission and distribution division has also been awarded contracts to develop 765 kV transmission lines and a gas-insulated substation that is aimed at integrating solar energy zones in Rajasthan and Karnataka.

The company has also bagged another significant order in Kuwait to construct a 400kV gas-insulated substation. This substation will play a crucial role in supplying power to the residential clusters being developed as part of the South Sabah Al-Ahmad City project.

L&T also mentioned that Oman is consolidating its standalone electricity networks into a unified 400 kV national grid. In line with this interconnection and grid enhancement initiative, PT&D has been entrusted with contracts to erect a 400 kV Overhead Transmission Line and two 400 kV Grid Stations. Additionally, in the United Arab Emirates, the company has successfully secured orders to construct two 132 kV substations and related infrastructure works.

Larsen & Toubro, an Indian multinational, is involved in EPC Projects, hi-tech manufacturing and services, with a global presence spanning over 50 countries.

Larsen & Toubro shares closed in the green at ₹3,482 apiece, up 1.6% on the NSE.