L&T eyes sub-contract works

Months after being forced by its foreign partner to quit the race for modernisation of metro airports, engineering major Larsen and Toubro is looking to win at least a major chunk of sub-contract works from the Delhi and Mumbai airport revamp projects.

The company is eyeing a major chunk of works related to terminal building constructions, airside and landside works.

Confirming this, L&T CFO Y M Deosthalee said: "As far as airport modernisation is concerned, we will be looking for sub-contract works for Mumbai and Delhi (from the consortia that won the airport projects)."

L&T sources said the company is already negotiating with these consortia for subcontract works. "The works include terminal building construction, runway, aprons and taxi ways. The company is already doing these works at Hyderabad, where GMR is the main contractor,." a source said.

GMR group has also won the contract for Delhi airport project. L&T had bagged sub-contract works worth Rs 758 crore from GMR Infrastructure, which is constructing the new international airport in Hyderabad.

The company has the expertise and it had made a bid for the Delhi and Mumbai airport projects. But, it could not pursue as the foreign partner (Hochtief) withdrew from the project, the source said.

L&T had joined hands with Piramal Enterprises (Ajay Piramal group) and Hochtief airport of Germany to bid for the Delhi airport project, while it had partnered Bharti and changi of Singapore for Mumbai.

The company was forced to withdraw the bid after the foreign partners failed to fulfil few criteria laid down by the civil aviation ministry.

L&T is an equity partner in the consortium, Bangalore International Airport (Bial), which is developing the new international airport in the country's silicon valley.

The company along with Zurich International airport holds 17 per cent stake in the consortium, which is led by Siemens that holds 40 per cent stake, while Karnataka government and the central government hold 13 per cent each.