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News: As per media sources, L&T and Megha Engineering & Infrastructures (MEIL) are set to be awarded a project worth Rs 14,000 crore to build Thane-Borivali twin tunnel project that will link the city's east, west via a six-lane road beneath Sanjay Gandhi National Park. The project aims to build two road tunnels of 10.8 km each under the Sanjay Gandhi National Park (SGNP) and the approach roads on both ends. MEIL has bid Rs 7,464 crore for Package 1, which entails designing and construction of 5.75 km from the Borivali side for the twin tunnel project. L&T, on the other hand, bid Rs 6,625 crore for Package 2 that covers designing and construction of 6.09 km from the Thane side for the twin tunnel project
View: With this major order, L&T has announced Q4FY23E EPC orders in the range of ~Rs 26,000-41,000 crore (as on date, ex-services segment) across railway, hydrocarbon, power T&D, water treatment, heavy engineering, buildings & factories segments. For 9MFY23, L&T posted order inflow of Rs 1,54,429 crore with order backlog of Rs3,86,588 crore. We are expecting L&T to achieve its revenues and EBITDA CAGR of 15.1% and 16.6%, respectively, over FY22-25E
Impact: Positive