Indian engineering and construction giant Larsen & Toubro (L&T) has secured major contracts for Bangladesh's Dhaka Metro Rail Line 1, signalling a boost in economic ties between Dhaka and New Delhi amid efforts to reset bilateral relations, Indian media outlet NDTV reported on Wednesday.

L&T's Transportation Infrastructure business has won Design & Build orders for two key systems packages of the Dhaka Mass Rapid Transit Development Project (Line 1), Bangladesh's first underground metro rail project, the company said in a press release.

The contracts cover Package CP09, involving track works and electrical systems, and Package CP10, covering signalling, telecommunications and platform screen doors (PSD). L&T classifies contracts valued above Rs 5,000 crore as major orders.

The development comes as the Bangladesh government moves forward with plans to implement three metro rail projects in Dhaka at an estimated combined cost of Tk 2.5 trillion (Tk 250,000 crore).

The Executive Committee of the National Economic Council (ECNEC) has approved 12 projects worth an estimated Tk 1.69 trillion (Tk 1,68,780 crore), including three metro rail projects aimed at developing an environmentally friendly mass transportation system in the capital.

L&T to deliver key operational systems

Under CP09, L&T, in partnership with Japan's Sumitomo Corporation, will handle the design, procurement, installation, testing and commissioning of track works and electrical systems across the corridor.

The package includes power supply and distribution systems, traction substations, overhead catenary systems and associated electrical facilities.

Under CP10, L&T will execute the signalling, telecommunications and platform screen door systems throughout the network.

“Together, the two packages form the core operational systems of Dhaka Metro Line 1, and will deliver a safe, reliable and world-class urban transit solution for the people of Dhaka,” L&T said in its press release.

Commenting on the contracts, Ramkumar S, Senior Vice President and Head of Transportation Infrastructure at L&T, said the repeat orders from Dhaka Mass Transit Company Limited (DMTCL) reflected the company's capabilities in delivering large-scale, integrated urban transit projects.

He said L&T's experience in delivering electrical and mechanical systems for Dhaka Metro Line 6, as well as its ongoing work on the Jakarta Metro, positioned the company to integrate multiple systems in coordination with original equipment manufacturers and other stakeholders.

Line 1 to connect Dhaka with the airport and Purbachal

Funded by the Japan International Cooperation Agency (JICA), Dhaka Metro Line 1 will span approximately 31 kilometres and provide a modern mass transit system for the capital.

The project comprises two routes: the Airport Route, connecting Kamalapur with the airport, and the Purbachal Route, extending from Natun Bazar to Purbachal Terminal. The network will include 19 stations and a depot at Pitalganj.

L&T had previously secured and delivered the integrated railway systems package for Dhaka Metro Line 6, Bangladesh's first metro rail corridor, which is now in commercial operation.

The company said its Transportation Infrastructure business is a major engineering, procurement and construction (EPC) player, with experience in complex rail infrastructure projects in India and international markets.

Development coincides with Bangladesh-Japan investment talks

The contract announcement comes as Bangladesh seeks to expand international investment partnerships and strengthen economic cooperation with major regional partners.

On Wednesday, Prime Minister Tarique Rahman invited Japanese investors, businesses and financial institutions to explore opportunities in Bangladesh during a joint address in Tokyo following his meeting with Japanese Prime Minister Sanae Takaichi.

The Prime Minister called for greater Japanese participation in Bangladesh's next phase of economic growth, highlighting opportunities across infrastructure, manufacturing, energy and technology.

With Japanese financing supporting Dhaka Metro Line 1 and L&T partnering with Sumitomo Corporation on the project, the initiative brings together Indian engineering expertise and Japanese investment and industrial cooperation to develop Bangladesh's urban transport infrastructure.

Sun News/ rabbi