As per The Moneycontrol report, Larsen & Toubro (L&T) is contemplating partnerships with Chinese firms, adhering to the recently relaxed Press Note 3 guidelines.
These adjustments specifically involve solar manufacturing, capital goods, and electronic components
Subramanian Sarma, L&T's deputy managing director and president, conveyed to Moneycontrol on March 21 that while L&T is not currently engaged in collaborations with Chinese firms, it remains open to future possibilities.
The primary focus would be on energy transition projects, where maintaining competitiveness is crucial for their success.
The relaxed FDI norms under Press Note 3 allow for investments where investors from land-bordering nations hold non-controlling stakes up to 10% through the automatic route—these include inputs for solar manufacturing, capital goods, and electronic components.
Initially introduced in April 2020, Press Note 3 mandates government approval for investments from nations sharing a land border with India.
The recent amendments specify the criteria for "beneficial ownership," enabling certain investments to proceed automatically.
This relaxation targets specific sectors, potentially aiding L&T in large-scale energy projects where costs and competitiveness are pivotal.
Read More: L&T Technology Services Launches AI-Powered Lung Digital Twin Platform!
Aligned with its Lakshya 2026 plan, L&T's focus remains on sustainability and pivoting towards green energy, data centres, and semiconductors.
The firm targets a 15% revenue growth and a 10% increase in order inflow by FY26, indicating its commitment to evolving market demands.
The relaxation aligns with broader government strategies to strengthen India's manufacturing capabilities.
By allowing partnerships that enhance technological inputs and competitive edge, it helps established firms like L&T expand their operational efficacy.
As of March 23, 2026, at 1:32 PM, Larsen & Toubro share price on NSE was trading at ₹3,310.80 down by 3.61% from the previous closing price.
Under the recently amended Press Note 3, Larsen & Toubro remains receptive to partnerships with Chinese firms, particularly in projects where heightened competitiveness and cost efficiencies are vital. By aligning with government policies, L&T is positioned to potentially explore synergistic collaborations that align with its strategic growth intentions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 23, 2026, 3:22 PM IST
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