Thursday, July 23, 2020

Will be conscious of govt directives: L&T on partnering with Chinese firms

L&T Group Chief Financial Officer R Shankar Raman said Chinese firms, which it had contracted, are providing critical equipment for some of the projects and helping in implementing and operating them.


Engineering major Larsen & Toubro (L&T) on Wednesday said it will be "conscious" of government's directives while getting into future partnerships with Chinese firms for fresh orders, even as it would continue with the existing tie-ups for contracts as most of them are for critical projects.

"...it's something that we need to work through because as you know the orders from supply from China are contractual orders and we cannot, based on political stance, immediately turn turtle. So we have to make sure that all the obligations are understood in whatever contracts we have signed," L&T Group Chief Financial Officer R Shankar Raman said during a media call.

Amid rising tensions between India and China following violent clashes at the border, the government had banned 59 Chinese mobile apps.

Some of the major establishments such as Indian Railways decided to cancel a contract awarded to a Chinese firm, while MMRDA scrapped the tender process which had attracted bids from only Chinese firms.

Raman said that Chinese firms, which it had contracted, are providing critical equipment for some of the projects and helping in implementing and operating them.

"So we are not trying to turn them off and send them away. They are much part of the deals, but fresh deals we will be very conscious of what the government is saying...at the same time we have to develop an alternate ecosystem and it is not going to be an on-off kind of situation where you find a next equally compelling vendor or supplier available," he added.


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