L&T set to be first Indian firm to build metro outside India

The company is likely to complete the Rs 3,400-cr light rail-based urban transit system in Mauritius

Mumbai-based Larsen & Toubro (L&T) is set to become the first Indian company to build a metro rail project outside the country, with the company likely to complete the Rs 3,400-crore light rail-based urban transit system in Mauritius, to be commissioned by 2019-20.

“The Mauritius project will be the first overseas metro project that an Indian company will be executing independently. Railway subsidiary RITES has started technological consultancy and will submit a report soon. Work is set to start by the fourth quarter of this financial year,” said an official close to the development.

The target by the two Indian firms is to commission the first phase of the Port Louis Rose Hill segment by 2019-20. 

In addition to this, the company has won contracts for designing, constructing, and commissioning the Riyadh (Saudi Arabia) and Doha (Qatar) metro projects.

According to the initial plan, the project, which will cover the 26-km stretch from Cure Pipe to Port Louis, will have 19 stations and six urban terminals. 

Industry experts seem to be upbeat about L&T being the first Indian company to venture into a metro sector outside the country. 

Adil Zaidi, partner, economic development and infrastructure advisory, Ernst & Young, said: “It is out-of-the-box thinking as it would be a different geography and different construction methodology; therefore, knowledge transfer becomes very important, which can be done by engaging with the local contractors. The challenge for the Indian companies would be getting strong downstream local tie-ups.”

He added that the government of Mauritius and the ministry of urban development should lend a helping hand to the company.

According to sources close to the development, the Mauritius contract was awarded to L&T after Delhi Metro Rail Corporation (DMRC) refused to take it up owing to technical reasons. A deal has been signed between Metro Express Ltd, a Mauritius state-owned company, and L&T. 

While India will be giving about 50 per cent of the project cost as grant, the rest will be arranged through a line of credit by the State Bank of Mauritius Infrastructure Development Company Ltd. 

At present, there are at least 16 metro projects in India under various stages of execution, with L&T implementing Hyderabad metro, among others. 

However, L&T is handling the Rs 20,000 crore Doha Metro project in Qatar as part of a joint venture including Aktor (Greece), Yapi Merkezi Insaat (Turkey), STFA Group (Turkey), and Al Jaber Engineering (Qatar). 

For the Rs 35,000 crore Riyadh project, L&T has secured the project as part of a consortium, which includes companies such as Ansaldo STS (Italy), Impregilo S.p.A (Italy), and Bombardier Transportation Ltd (the UK).