Larsen and Toubro has been successful in bidding to build the largest pumped storage in India, ranging between 2500 crore and 5000 crore. Through its business division of Heavy Civil Infrastructure, L&T has been awarded the contract. This is a historic milestone in the Indian energy infrastructure project.
The Torrent PSH 3 is the previous order of the Torrent Energy storage solutions. The project will be called the Saidongar-1 Pumped storage project and will be situated in the district of Maharashtra, Raigad. It will install a total of 3000 megawatts.
In Saidongar-1, there will be ten units of 300 megawatts. It must be capable of providing peak power demand when it goes online and increase the reliability of the grid. The other issue that is deemed crucial to the project is enhancing energy security not only in Maharashtra, but also in the neighbourhood areas.
The contract will also place the entire scope of civil and hydro mechanical works on L&T. This encompasses design, engineering, and ground implementation of complicated construction work. These are some of the main works that are important in the functioning of a large-scale pumped storage facility that must be highly accurate and stable in the long run.
Pumped storage facilities are significant in the matching of the supply as well as demand of electricity. When the demand is low, they build excess power, and when the demand is high, they discharge. We believe that projects like Saidongar-1 will be trustworthy because the capacity of renewable energy will be increased, and the power generation will become more unpredictable.
The greater clean energy and decarbonisation goals of India also benefited from the project. Pumped storage also helps in the elimination of fossil-fueled peaking plants in the grid through the incorporation of solar and wind energy into the grid. This will correspond with the long-term target of the nation to enjoy a more steady and lasting energy blend.
L&T, in a filing to the stock exchange, said that the order had been made on its good track record of accomplishing complex hydro and pumped storage projects. The firm focused on the fact that it targets the quality of the engineering, the safety level of the standards, and the delivery on time. L&T was also a winner in a bridge contract between 1000-2500 crore in West Bengal in the same month.
The sentiment of the positive investor is supported by the recent order wins registered by L&T. Within the past three months, the company has recorded a rise of 3.67% in its share price and an increase of nearly 11% in its share price within the past six months. We can view the infrastructure spending that is being employed to support the backlog of orders and growth opportunities of L&T in the long term.
