L&T quickly realised that investment in infrastructure required a very long term view with a horizon of at least fifteen years. Hence, in order to take advantage of the increased private participation in the nation building process, it was decided that this infrastructure subsidiary would internally re-align to report to the CFO of L&T and take decisions on bids purely from an investment perspective and not be clouded with construction-related opportunities or margins.
The company is today a pioneer of the public-private-partnership model of development in India, where infrastructure projects are developed in partnership among the Central and state governments, private sector partners, financing agencies and communities. It has business interests in the development of roads and bridges, ports, metro rail, power transmission lines, wind energy and emerging sectors such as water and railways and handles a portfolio of infrastructure assets with estimated project cost of $ 7 billion comprising 22 projects across sectors.
L&T IDPL covers the entire gamut of transportation infrastructure development starting from identifying projects, studying their viability, understanding the risks, determining risk mitigating measures, financial structuring of these projects (including re-financing) and project management, operation and maintenance of the asset and, finally, successful return of the utility to the Authority.
The company has not only been a pioneer in transportation Infrastructure development under the PPP model but also the leader in the roads sector with a significant presence of 19 road projects. It is one of India‘s largest road developers as measured by lane kilometers under concession agreements with the Central and state government authorities. Hyderabad Metro Rail, which is the largest Metro rail project in the PPP sector, is being developed by L&T IDPL.
L&T IDPL has successfully completed concessions and delivered the assets to the concessionaire authorities as well as exited the projects in various business segments with attractive equity returns. Some of the projects completed and exited by L&T IDPL include Kakinada Deep Water Port in Andhra Pradesh, Bengaluru International Airport, Jaipur-Kishangarh Expressway, Rajasthan and Dhamra Port,Odisha.