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Larsen & Toubro has secured a ‘mega’ domestic order valued between INR 10,000 crore and INR 15,000 crore from JSW Steel for engineering, procurement and construction works. The contract involves installation of key process facilities, including blast furnaces and steel melt shops, across sites in Ballari, Karnataka and Paradip, Odisha. The order supports JSW Steel’s plan to expand its crude steel capacity from 35 million tonnes per annum to over 50 MTPA by 2031. The development marks L&T’s largest order in the domestic metals segment.
Larsen & Toubro has secured a major engineering, procurement and construction (EPC) contract from JSW Steel, with the order value estimated between INR 10,000 crore and INR 15,000 crore, the company said in a regulatory filing in the past week.
The contract has been awarded to L&T’s minerals and metals business vertical and is described by the company as its largest order to date in the domestic metals sector. The scope of work includes engineering, procurement and installation of critical process facilities such as blast furnaces and steel melt shops.
The facilities will be developed primarily at JSW Steel’s manufacturing locations in Ballari, Karnataka and Paradip, Odisha, forming part of the company’s ongoing expansion programme. The project aligns with JSW Steel’s strategic objective to increase its crude steel production capacity from 35 million tonnes per annum (MTPA) to over 50 MTPA by 2031.
Officials indicated that the award reflects a long-standing collaboration between the two companies, with L&T having executed multiple metallurgical projects for JSW Steel over more than three decades. The current order is expected to involve complex engineering and construction activities across multiple sites, requiring integrated execution capabilities.
The expansion of steel manufacturing capacity is part of broader industry trends driven by infrastructure development, construction demand and manufacturing growth. Increased capacity is expected to support domestic consumption as well as export opportunities in the coming years.
From an infrastructure perspective, such large-scale industrial projects typically involve development of supporting facilities, logistics infrastructure and ancillary services around manufacturing hubs. Locations such as Ballari and Paradip are already established industrial clusters and are likely to see continued investment activity linked to capacity expansion.
L&T, a diversified engineering and construction conglomerate, operates across sectors including infrastructure, heavy engineering and manufacturing services. The latest order adds to its existing project pipeline and strengthens its position in the industrial EPC segment.
The development reflects continued capital expenditure by steel producers to scale operations and improve capacity utilisation, with EPC contractors playing a central role in executing complex industrial infrastructure projects across the country.
Source - PTI
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