Larsen & Toubro Drops Port Development Project in Gujarat

Larsen & Toubro Drops Port Development Project in Gujarat
New Delhi: Engineering and construction firm Larsen & Toubro has decided not to pursue a project to develop port in Kachchigarh, Gujarat, citing environment reasons.

"...pursuant to marine surveys carried out at Kachchigarh and detection of the presence of growing coral reefs in the vicinity, it was communicated to GMB (Gujarat Maritime Board) that the company did not seek further extension to the Letter of Intent that had expired in August 2013," Larsen & Toubro said in a regulatory filing.

L&T Infrastructure Development Projects (L&TIDPL), a subsidiary of L&T, had incorporated a wholly-owned subsidiary L&T Port Sutrapada Pvt Ltd to implement the project awarded by GMB in 2008 for setting up a greenfield sea port at Sutrapada in Gujarat on build, own, operate, transfer (BOOT) basis, it said.

While the company had geared itself for undertaking the project, GMB faced severe difficulty in allocating the required land for the project, it said.

"In July 2010, GMB approved shifting of the location of the project site to Kachchigarh, Dwaraka District for development of the sea port. The subsidiary was re-christened as L&T Port Kachchigarh Ltd," it added.