Labourers work to build a station for the Dhaka Metro
Labourers work to build a station for the 'Dhaka Metro Rail' project in Dhaka on February 19, 2023. Photo by MUNIR UZ ZAMAN/AFP via Getty Images

Larsen & Toubro has secured two substantial design-and-build contracts for the systems that will power Dhaka Metro Rail Line 1, reinforcing the Indian engineering group's growing presence in Bangladesh's urban transit programme. The awards, described by the company as major orders in the ₹5,000 crore to ₹10,000 crore band, cover essential operational components for what will be the country's first fully underground metro corridor. The work is expected to be delivered in collaboration with Japanese partners on parts of the scope, continuing a pattern of cross-border cooperation on the project.

One package focuses on track works and electrical systems. Under this contract, L&T, working with Sumitomo Corporation, will handle the design, supply, installation, testing and commissioning of the full track infrastructure, the power supply and distribution network, traction substations, the overhead catenary system and related electrical equipment along the entire route. The second package covers signalling, telecommunications and platform screen doors. L&T will take the lead on these systems across the network, ensuring safe train control, reliable communications and passenger protection at stations.

The Line 1 corridor stretches roughly 31 kilometres and is financed by the Japan International Cooperation Agency. It comprises two main routes: the Airport Route running from Kamalapur to the airport, and the Purbachal Route linking Natun Bazar with Purbachal Terminal. The alignment will feature 19 stations and a depot at Pitalganj. Once operational, the line is intended to move large numbers of passengers daily through a combination of underground and elevated sections, offering a faster alternative to the capital's heavily congested roads.

This latest win follows L&T's earlier delivery of the integrated railway systems package for Metro Line 6, which is already carrying passengers. Company executives have noted that the repeat business from Dhaka Mass Transit Company Limited reflects confidence in the firm's capacity to execute complex urban transit projects on schedule and to required standards. The contracts add to L&T's order book at a time when the company is expanding its international infrastructure portfolio across South Asia and beyond.

For Dhaka, the project addresses long-standing mobility challenges. Rapid population growth, limited road space and rising vehicle numbers have made daily commuting increasingly difficult. A modern metro system is seen as one of the few practical ways to absorb future travel demand while reducing reliance on private cars and informal transport. Japanese funding and technical involvement have been central to the network's development, with Line 1 forming part of a wider plan for several metro corridors across the city.

The contracts also highlight the role of international contractors in Bangladesh's large infrastructure push. While local firms and Chinese and Japanese companies are involved in other packages on the same lines, L&T's selection for the core systems work underscores the specialised nature of track, power, signalling and station equipment. Successful delivery will depend on coordination among the various contractors, timely availability of materials and effective interface management with the civil works already under way or planned.

Beyond the immediate construction phase, the metro expansion is expected to influence land use around stations, support commercial activity and improve access to jobs and services. For L&T, the Dhaka contracts provide a further reference project in a growing regional market where urban rail is becoming a priority. As work progresses, attention will turn to execution timelines, quality of installation and the eventual testing and commissioning phase that will determine when passengers can begin using the new underground sections.