Larsen & Toubro faces the prospect of cancellation of one of its biggest road building contracts worth almost Rs 3,000 crore as its client GMR Infrastructure has decided to terminate the toll road project for National Highways Authority of India (NHAI). GMR Infrastructure has pulled out of NHAI's biggest road project being set up at a cost of
Rs 7,700 crore for the six-lane Udaipur-Kishangarh-Ahmedabad segment of the national highway, citing land acquisition, environmental clearance and toll notification as some of the issues.
Source in L&T's engineering, procurement and construction business, said that the company has not received any official communication from GMR and the order continues to be on its books. Analysts and sector officials, however, fear that cancellation is imminent, given GMR's decision to not to go ahead with the project.
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