Larsen & Toubro Ltd., or L&T, India's leading engineering, technology and construction company, said it has bagged a contract for Rs.1,245 crore from Bhutan for the construction of the dam package, a part of the 1,200MW Punatsangchhu-I Hydroelectric Project.

The Mumbai-based company said that the Punatsangchhu-I Hydroelectric Project Authority or PHPA was constituted through an agreement between the Government of India and the Royal Government of Bhutan.

The PHPA is setting up the project across Punatsangchhu River, around 80 km from Thimpu, the capital of Bhutan.

L&T's scope of work includes construction of the diversion tunnel, dam, intake and desilting arrangement including hydro-mechanical works.

L&T's Construction Division, with a completion schedule of 66 months, will execute the project, the company said.

This is the first of a series of 10 hydropower projects jointly identified by the governments of India and Bhutan and to be implemented for a total installed capacity of 11,576 MW by 2020, L&T said.

The company said this was the second hydroelectric power project in Bhutan, the first being the 1,020 MW Tala Hydroelectric Project that was completed ahead of schedule.

WAPCOS Ltd. is acting as the engineering and design consultant for the project.

L&T in a release on Tuesday said that the company has bagged orders worth Rs.1,100 crore in the fourth-quarter of 2008-09 from Power Grid Corp. and Rail Vikas Nigam Ltd. to set up high-end transmission lines and substations as well as a project for the Indian Railways.

At the BSE, L&T shares are currently trading at Rs.673.90, up by Rs.1.25 or 0.19% on a volume of 5.29 lakh shares. The company's scrip touched an intraday high of Rs.684.00 and an intraday low of Rs.663.00.

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