Jan. 23 (Bloomberg) -- Larsen & Toubro Ltd., India’s biggest builder of power networks and airports, may borrow as much as $700 million to fund a mass transit rail project in the southern Indian city of Hyderabad, according to a person with direct knowledge of the matter.

Mumbai-based Larsen & Toubro will determine whether to seek the loan after Hyderabad Metro Rail Ltd., the company that will operate the railway system, decides on importing coaches and other fixed assets, the person said, asking not to be identified as the matter is private. The loan may have a maturity of as much as 12 years, the person said.

To contact the reporter on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net