Confirming this to The Financial Express, A.Ramkrishna, president L&T, said that the combined muscle of the construction companies in India would put them in a better position to compete with global giants who will bid for the project.

"By pooling our resources, both manpower and technology, we will be able to take on much larger projects than we can individually. We would also not be pitted against each other, which may force undercutting and a reduction of margins." he said.

While it is too early for these companies to start working out the details, talks are currently focused on the relative strengths of each company, and how best the consortia can be created to enable themto win contracts.

The move is also expected to help evolve common standards for the construction industry. With international supervisory consultants monitoring the project, it will become vital for the Indian construction houses to meet the global benchmarks.

"We will have no trouble meeting the standards, but a common system will have to be adopted by all the construction firms," said Ramkrishna.

The construction industry sees the demands made by the mega expressway projects as an opportunity to pool resources, acquire world class technology and contract management capabilities.

L&T, which on a average invests Rs 150 crore each year on equipment, will increase it to about Rs 200 crore once the government crystallises the projects. "L&T would like to focus on being a contractor on projects. Our second priority would be to bid for the sections opened to the private sector, " said Ramkrishna, while outlining L&T's plans for the future.

Other private sector construction companies are also expected togear up to corner some of the huge business opportunities created by the expressway projects.