Kalpataru wins $28m ONGC contract

Vol 16, PW 16 (07 Mar 13) News in Brief
     

Kalpataru Power Transmission is set to win a contract to replace 45 pipelines at ONGC's Ahmedabad asset.

When ONGC opened price bids on January 24, Kalpataru was lowest bidder quoting Rs155cr ($28.7m). Next came Action Construction Equipment with Rs166cr ($30.7m), followed by IL&FS Engineering and Construction with Rs167cr ($30.9m), Essar with Rs174cr ($32.3m), Corrtech with Rs179cr ($33.2m), KSS with Rs263cr ($48.7m) and PLL with Rs295cr ($54.7m).

Kalpataru will receive the LoA by March 8 and begin work in the next 15 days. “Kalpataru quoted a competitive rate,” says an industry source.

“It cannot earn profits with this project.” ONGC floated the tender on October 28, 2011 to replace 247.5-km of pipelines with diameters ranging from 6-inches to 12-inches.

ONGC wants work completed within 18 months of the LoA. The project will see ONGC replacing crude oil, associated gas, gas injection, water injection and effluent pipelines.

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