L&T favourite for Haldia CDS contract

Vol 19, PW 10 (28 Jan 16) News in Brief

Punj Lloyd was expected to win but didn’t bid.

Now L&T is favourite to win an estimated $45m (Rs300cr) contract to install a Coke Drum System and related equipment for IndianOil’s refinery upgrade at Haldia. Only L&T and IndianOiltanking bid by the extended December 22 deadline.

Many are shocked Punj stayed away as it was widely expected to win because it’s already on site for other refinery work. Some say Punj has more orders than it can handle.

L&T was the sole bidder by the original December 15, 2015 deadline, forcing IOC to grant a week’s extension. “L&T has been ready with its bid for almost a year,” we hear.

“Only small changes were needed when IOC split the original tender.” Some believe new bidder IndianOiltanking might upset L&T’s plans with an aggressive bid.

“Don’t underestimate IndianOiltanking,” we hear. “As a much smaller company they can afford to be aggressive.