State planning MoU with L&T to rebuild old buildings in city

MUMBAI: Maharashtra government is planning to enter into Memorandum of Understanding (MoU) with engineering and construction giant Larsen and Toubro to rebuild the old and dilapidated buildings in Mumbai, Chief Minister Vilasrao Deshmukh said on Friday.

Speaking at a function to celebrate the 70th anniversary of Larsen and Toubro, Deshmukh said since the company is located in Mumbai, it is its social obligation to cooperate with the state to develop the city.

He said it is not necessary for the government to always take the tender route to invite private parties to undertake any project. The government can think in terms of entering into a Memorandum of Association with the company.

Deshmukh also indicated it may not be a typically commercial deal and the company may be roped in to work on a cost-plus basis.

Earlier, it was union petroleum minister Murli Deora who in his speech said the state government should consider inviting Larsen and Toubro to reconstruct the dilapidated buildings in Mumbai as not many good builders are coming forward to do the job.

It is expected to be a gigantic task as hundreds of buildings, majority of them located in south Mumbai and south central Mumbai urgently need repairs or reconstruction.