The Hindu Business Line : L&T plans to spend big on infrastructure projects

The construction and infrastructure engineering major Larsen & Toubro will be able to undertake infrastructure projects involving investments anywhere between Rs 5,000-Rs 10,000 crore under the build-operate-own-transfer (BOOT) route over the next two or three years, according to Mr A.M. Naik, Chairman and Managing Director of L&T.

`L&T is constantly looking for viable opportunities in infrastructure,' Mr Naik, who was here on Sunday for the ground-breaking ceremony for the company's Rs 500-crore Coimbatore light engineering manufacturing centre, told Business Line.

L&T, according to Mr Naik, has already committed Rs 1,000 crore for infrastructure projects, the funding break-up being the property development project at Rs 100 crore and Rs 200 crore on account of transportation infrastructure project. This is besides its own direct investment of another Rs 200 crore. In addition to these, it has also raised Rs 550-crore equity from private equity group Silver Peak Investment and consortium of India development fund.

At the current debt-equity ratio of 30:70 for the Rs 1,000-crore fund already marked up, L&T will be in a position to take up Rs 3,500-crore project size and the company is also comfortably placed to initiate another similar sized project, Mr Naik said.

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