Dilip Buildcon has received Grant of Authorisation from Petroleum and Natural Gas Regulatory Board (PNGRB) for laying, building, operating or expanding petroleum and petroleum product (LPG) Pipeline from Paradip, Odisha to Raipur, Chattisgarh. The project entails the grant of an exclusive license by PNGRB to act as the authorized entity for the development of ‘pipeline’ infrastructure for the transportation of LPG, including financing, construction, and operation of the same, and to levy and collect tariff for the transportation of LPG up to the designated delivery point for operation period of 25 years after construction period of 3 years.
The proposed pipeline infrastructure will facilitate the transportation of LPG to the bottling plants of various Oil Marketing Companies (OMCs), thereby intending, replacing the existing road-based transportation of LPG through tankers and enhancing road safety. The pipeline is proposed to be operated also as a Common Carrier, in accordance with the applicable PNGRB framework, with eligible OMCs/users accessing the pipeline capacity. The Project will generate revenue through the applicable Petroleum and Petroleum Products Pipeline Transportation Tariff for transportation of LPG through the pipeline.
Accordingly, the company’s role through SPV will be to develop and operate the LPG pipeline infrastructure and provision of transportation services. To clarify the matter, the company will not be engaged in the procurement, trading, distribution or sale of LPG, or bear the associated commercial risks relating to LPG procurement and marketing. The project shall be implemented through a Special Purpose Vehicle (SPV), in which the company shall hold 100% equity. The engineering, procurement and construction (EPC) works are proposed to be awarded to the company, representing a business opportunity valued at around Rs 1800.00 crore (excluding GST), to be executed over a period of 36 months.
Dilip Buildcon’s core business is undertaking construction projects across India in the roads and irrigation sectors. They specialize in constructing state and national highways, city roads, culverts and bridges.
