Dilip Buildcon receives Rs 1,800-cr LPG pipeline infrastructure order
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.
Under the proposed Project, Dilip Buildcon (DBL) will undertake the design, finance, development, construction, operation and maintenance of the proposed LPG pipeline infrastructure, subject to applicable approvals, authorisations and regulatory requirements of the Petroleum and Natural Gas Regulatory Board (PNGRB).
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, DBL's role through SPV will be to develop and operate the LPG pipeline infrastructure and provision of transportation services. To clarify the matter, DBL 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 Dilip Buildcon (DBL) shall hold 100% equity. The Engineering, Procurement and Construction (EPC) works are proposed to be awarded to DBL, representing a business opportunity valued at approximately Rs 1800 crore (excluding GST), to be executed over a period of 36 months.