L&T bags water supply orders in Rajasthan; issues Rs 500-crore ESG bond
Engineering & construction behemoth L&T has bagged major water supply orders in Rajasthan even as the company announced a Rs 500-crore ESG bond issuance deal.
The water & effluent treatment business vertical of L&T has secured significant orders from Rajasthan’s Public Health Engineering Department (PHED). Though the exact order size has not been disclosed by L&T, the company has classified it as ‘significant’ – a value size between Rs 1,000 and Rs 2,500 crore.
L&T said it has won an EPC order for the Rajasthan Rural Water Supply and Fluorosis Mitigation Project – Phase II, Package-1. The scope encompasses supply & installation of 5,251-km transmission and distribution pipelines, construction of 38 ground level reservoirs with an aggregate capacity of 40 ML, 20 pump houses and 132 overhead service reservoirs with an aggregate capacity of 25 ML.
The project is aimed at meeting the demand for water in 285 villages and the towns of Surajgarh and Udaipurwati in Jhunjhunu district.
Another project won by the business vertical pertains to strengthening and rehabilitation of the water supply system on the Kekri-Sarwar sector in Ajmer district. The scope of the project includes the supply & installation of 43-km transmission pipelines.
Associated electromechanical, instrumentation, automation and SCADA works, one year defects liability period and 10 years operations & maintenance are also in the scope of both the projects. L&T has so far delivered 24 such water projects alone in Rajasthan.
Meanwhile, L&T has announced a Rs 500 crore ESG bond issuance deal, becoming the first Indian corporate to do so under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework. HSBC is acting as the sole lead arranger in this transaction.
The issuance is compliant with SEBI’s regulatory framework, which is designed to promote transparency, accountability, and alignment with international ESG standards. The framework outlines key requirements for issuers, including the disclosure of sustainability objectives, mandatory external assessments such as Second-Party Opinions (SPOs), and post-issuance reporting. It also mandates clear Key Performance Indicators (KPIs) and targets to measure ESG outcomes, crucial steps in supporting India’s Net-Zero and climate-resilient growth agenda.
As part of the ESG Bond deal, L&T is committed to environmental targets, including a decrease in intensity of fresh water withdrawal and emissions of greenhouse gases. These initiatives are in line with the company’s long-term sustainability goals of achieving water neutrality by 2035 and carbon neutrality by 2040, said an official statement.
