Larsen & Toubro Secures Major Saudi Arabia Power Grid Orders Worth Up to Rs 5,000 Crore

Larsen & Toubro's (L&T) Power Transmission & Distribution (PT&D) business has secured substantial new orders in Saudi Arabia, with a total value ranging from Rs 2,500 crore to Rs 5,000 crore. The key projects include the construction of a 380/33 kV Gas Insulated Substation (GIS), which will be equipped with advanced components like hybrid GIS, large transformers, reactors, and sophisticated protection, control, and automation systems. Additionally, L&T will build over 420 kilometers of 380 kV overhead transmission lines. These initiatives are crucial for enhancing Saudi Arabia's electricity grid infrastructure and are aligned with the country's National Renewable Energy Programme (NREP). The program aims to significantly increase renewable energy generation and requires a robust grid capable of handling this new capacity. By strengthening the transmission network, these L&T projects will facilitate the integration of renewable energy sources into the national grid, supporting Saudi Arabia's clean energy transition. Impact: This significant order win strengthens L&T's international order book and showcases its expertise in executing large-scale power infrastructure projects in the Middle East. It provides L&T with substantial revenue potential and reinforces its position as a key player in global energy infrastructure development. The success in securing these contracts is expected to positively influence investor sentiment towards L&T's future growth prospects. Rating: 7/10. Terms: Gas Insulated Substation (GIS): An electrical substation where all the high-voltage conducting components are contained within an earthed metal enclosure filled with insulating gas, typically sulfur hexafluoride (SF6). This design offers greater reliability, safety, and a smaller footprint compared to traditional air-insulated substations. National Renewable Energy Programme (NREP): Saudi Arabia's strategic initiative to diversify its energy mix by increasing the share of renewable energy sources like solar and wind power in its overall energy consumption.