Larsen & Toubro Secures Major Projects Worth ₹2,500-5,000 Crore in Saudi Arabia

Infrastructure major Larsen & Toubro Limited announced on Wednesday that it has secured significant project orders in Saudi Arabia, with a total value ranging from ₹2,500 crore to ₹5,000 crore.

The first order involves the construction of a gas-insulated substation, a critical component for managing and distributing electrical power safely and efficiently. The second set of orders pertains to the development of overhead transmission links, which will span an aggregated route length of more than 420 kilometers.

These projects are strategically aligned with Saudi Arabia's National Renewable Energy Programme (NREP). The country is actively modernizing its electricity grid to accommodate the increasing integration of renewable energy sources like solar and wind power. The expansion and strengthening of transmission lines and substations are considered vital steps to support the scaling up of these renewable energy projects and enhance the overall power infrastructure.

Impact This contract win is a positive development for Larsen & Toubro, as it enhances its order book and strengthens its presence in the Middle East infrastructure market. It highlights the company's expertise in executing complex projects related to power transmission and distribution, crucial for the energy transition.

Impact Rating: 7/10

Difficult Terms: Gas Insulated Substation (GIS): An electrical substation where highly compressed gas, typically sulfur hexafluoride (SF6), is used as an insulator instead of air. This allows for a compact design and increased reliability. Overhead Transmission Links: Electrical cables that carry electricity from power generation sites to substations and then to consumers, supported by poles or towers above ground. National Renewable Energy Programme (NREP): A government initiative by Saudi Arabia aimed at increasing the proportion of electricity generated from renewable sources within the country's energy mix.