L&T Clinches Up to ₹5,000 Crore Deal for 3,000 MW Saidongar-1 Pumped Storage Project
By Cygnus | 14 Jan 2026
Larsen & Toubro (L&T) has secured a large contract from Torrent Energy Storage Solutions Pvt Ltd for construction of the 3,000 MW Saidongar-1 Pumped Storage Project (PSP) in Maharashtra, the company said in an exchange filing.
The project, located in Raigad district, is among the largest pumped storage projects under development in India and is expected to play a key role in supporting grid stability as renewable capacity expands.
L&T said the order falls under its “large” category, which typically corresponds to a contract value in the range of ₹2,500 crore to ₹5,000 crore.
Scope of work: civil and hydro-mechanical execution
L&T said its Heavy Civil Infrastructure business will be responsible for design, engineering, and construction, including civil structures and hydro-mechanical works.
The project involves:
- 10 generating units
- 300 MW capacity per unit
- total installed capacity of 3,000 MW
Pumped storage projects are increasingly being positioned as essential infrastructure for India’s clean energy transition because they allow surplus renewable electricity to be stored and deployed during peak demand periods.
Why pumped storage matters
Officials and industry experts see pumped storage as one of the most scalable long-duration storage solutions currently available. Such projects typically:
- store surplus power during off-peak periods
- release stored energy during peak demand
- improve grid balancing and frequency stability
L&T said the Saidongar-1 project is designed to support renewable integration and strengthen the resilience of the regional power system.
Market reaction: stock ends lower despite order win
L&T shares saw a volatile session, rising early after the order announcement before closing lower on the day.
Market participants attributed the decline to broader sentiment and sector-wide movement, rather than the domestic order win, which adds visibility to L&T’s infrastructure pipeline.
Summary
L&T has secured a major contract worth ₹2,500 crore to ₹5,000 crore from Torrent Energy Storage Solutions for the 3,000 MW Saidongar-1 Pumped Storage Project in Maharashtra. The company’s Heavy Civil Infrastructure division will execute civil and hydro-mechanical works for the project, which includes 10 generating units of 300 MW each. Pumped storage is increasingly seen as critical for India’s renewable integration and grid reliability as the clean-energy buildout accelerates.
Frequently asked questions (FAQs)
Q1: What is the capacity of the Saidongar-1 project?
The project has an installed capacity of 3,000 MW, comprising ten units of 300 MW each.
Q2: Who is the client for the project?
The contract was awarded by Torrent Energy Storage Solutions Pvt Ltd, part of the Torrent group.
Q3: What is the value of the order?
L&T classified it as a “large” order, typically indicating a value of ₹2,500 crore to ₹5,000 crore.
Q4: Why is pumped storage important for renewables?
It allows electricity to be stored during low-demand periods and released during peak demand, improving grid stability and enabling higher renewable penetration.
Q5: Why did L&T shares fall despite the order win?
The decline appeared linked to broader market movement and sector sentiment rather than the domestic order announcement itself.
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