A part of Larsen and Toubro’s ₹9,000 crore worth of projects in Andhra Pradesh is at stake as the new government headed by Jaganmohan Reddy has decided to review all projects where less than 25% of the work has been completed.
Asked for comments, L&T MD & CEO S.N. Subrahmanyan said, “This initial way of looking over the previous regime slows down the progress. Some of our contracts are facing problems. It’s a general order which says those contracts [that have] not reached 25% of their execution are under review. About 3% of our ₹3 lakh crore order book is in Andhra Pradesh.”
Some of the major projects L&T is implementing in Andhra Pradesh include building bridges, roads, transmission lines, solar projects and cement plants among others.
The engineering and construction major is one of the key contractors to build the base infrastructure for the new state capital, Amaravathi, which includes roads, bridges, stormwater drains, sewerage and utility ducts for power as well as information and communications technology. This massive project has been an integral part of former Andhra Pradesh Chief Minister Chandrababu Naidu’s dream project of developing the capital city with global infrastructure. “We have not seen this in the past... where [when] one government goes and another government comes, they start reviewing everything the previous government did,” Mr. Subrahmanyan said.
Early this year, the smart world and communication business secured a major order from the Andhra Pradesh State FiberNet Limited (APSFL) for Bharatnet Phase-II works to establish an IP/MPLS Infrastructure covering the 13 districts of Andhra Pradesh.
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