Indian company secures $1 billion contract for Dhaka Metro Rail project

Bangla Press Desk: Indian infrastructure construction firm Larsen & Toubro (L&T) has secured two major packages for the Dhaka Metro Rail Line-1 project—one of three metro rail projects currently underway in Dhaka. The combined value of these contracts is up to $1 billion USD.

Under these agreements, the company will be responsible for the installation of railway tracks, power supply and electrical systems, as well as signaling, telecommunications, and platform screen doors. According to a report by the Indian news outlet NDTV, as Bangladesh and India work to reshape their bilateral relationship, commercial ties between the two nations are gaining momentum. As part of this, the Indian firm L&T has been awarded a significant contract for the Dhaka Metro Rail project.

The Government of Bangladesh is planning to implement a total of three metro rail projects in Dhaka, with an estimated total expenditure of 250,000 crore BDT. To develop an eco-friendly public transport system in the capital, the Executive Committee of the National Economic Council (ECNEC) has approved 12 projects—including these three metro rail initiatives—with a total estimated cost of approximately 168,780 crore BDT.

L&T’s Transportation Infrastructure division has secured the design and construction contracts for two key packages of the Dhaka Mass Rapid Transit Development Project (Line-1). The company views this project, valued at over 5,000 crore Indian rupees, as a major contract.

The two contracts are: Contract Package CP-09, which covers the installation of railway tracks and electrical systems; and Contract Package CP-10, which involves the installation of signaling, telecommunications, and platform screen doors. L&T noted that these works are part of Bangladesh’s first underground metro rail project.

Previously, L&T was awarded the contract for the integrated rail system for Dhaka Metro Rail Line-6—Bangladesh’s first metro rail corridor—a project the company has since completed. Line-6 ​​is currently in commercial operation. Ramkumar S, Senior Vice President and Head of the Transportation Infrastructure business at L&T, stated, "Securing another contract from Dhaka Mass Transit Company Limited (DMTCL) is a testament to L&T’s capability in executing large-scale, integrated urban transport projects globally."

He added, "We have the experience of implementing the electrical and mechanical systems for Dhaka Metro Rail Line-6, maintaining the highest standards and adhering to the stipulated timelines. We are also currently working on the Jakarta Metro Rail project. We are well-positioned to leverage our expertise in coordinating with various stakeholders and contractors to seamlessly integrate multiple complex systems."

According to the plan, Metro Rail Line-1 will span approximately 31 kilometers. The section from the airport to Kamalapur will be underground, while the stretch from Natun Bazar to Purbachal Terminal will be elevated. The entire line will feature 19 stations and a rail depot in Pitalganj.

Meanwhile, the northern route of Metro Rail Line-5—stretching approximately 20 kilometers—is planned to run from Hemayetpur in Savar, passing through Gabtoli, Mirpur-14, and Natun Bazar, before terminating at Bhatara.

The implementation of these new contracts will further advance the expansion of the capital's public transport system. However, it will be crucial to complete the construction within the scheduled timeframes and keep project costs under control.

In a press release, L&T stated that these two packages will collectively form the core operational systems for Dhaka Metro Rail Line-1, ensuring a safe, reliable, and world-class urban transport system for the residents of Dhaka.

The release further noted that under the CP09 package, L&T—in collaboration with its Japanese partner, Sumitomo Corporation—will handle the design, procurement, installation, testing, and commissioning of the entire rail track, power supply and distribution systems, traction substations, overhead catenary systems, and related electrical infrastructure. Meanwhile, under the CP10 package, L&T will install signaling systems, telecommunications, and platform screen doors across the entire network.

Larsen & Toubro’s (L&T) Transportation Infrastructure division is a leading entity in the Engineering, Procurement, and Construction (EPC) sector. The company possesses extensive experience in executing rail infrastructure projects, both in India and in international markets. The Indian firm has emphasized its commitment to maintaining the highest standards of safety, quality, and project execution.

Larsen & Toubro stated that the contracts it has secured fall under its internal classification for "large" orders—a category that, according to the company’s accounting framework, encompasses contracts valued between 5,000 crore and 10,000 crore Indian rupees.

Beyond this Indian firm, various components of the Metro Rail Line-1 and Line-5 projects have also been awarded to contractors from Japan, China, and Bangladesh. These projects are being financed by the Japan International Cooperation Agency (JICA).
Source: NDTV

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