Kalpataru wins three pipeline contracts

Vol 16, PW 26 (25 Jul 13) Midstream & Downstream

At a time when the pipeline industry is in a slump, Mumbai-based Kalpataru Power Transmission is having phenomenal luck.

Next month (August) Kalpataru will be awarded three contracts. The first is from Hindustan Petroleum to lay a 164.65-km LPG pipeline from Uran near Mumbai to Shikrapur village, passing through Chakan town near Pune.

When HPCL opened price bids on July 11 this year, Kalpataru was lowest bidder quoting Rs130.78cr ($22m). Next came KazStroy with Rs141.7cr ($24m) followed by IL&FS Engineering and Construction with Rs147cr ($25m).

Also in the race were Fabtech Projects with Advance Stimul Engineering and IndianOil with Action Construction Equipment but both were disqualified on technical grounds. Kalpataru will receive the LoA by end-August and begin work in September on the pipeline which will supply LPG to HPCL's storage and bottling facilities at Chakan and Bharat Petroleum's storage and bottling facilities at Shikrapur.

Kalpataru must complete the pipeline within 24 months of the date of award. Kalpataru also emerged lowest bidder in a separate HPCL tender to lay a 294-km LPG pipeline from Mangalore to Bangalore in Karnataka, passing through Hassan.

When HPCL opened price bids on July 9 for Section-I of the pipeline, it discovered Kalpataru had quoted Rs78cr ($13m) and Jai Hind Projects had quoted over Rs100cr ($17m). For Section-II, Action Construction Equipment was the lowest bidder quoting Rs91.9cr ($15m), followed by Jai Hind Projects quoting Rs92.08cr ($15m) and Corrtech.

This pipeline will also have a 106-km spur line to Mysore in Karnataka through Kalibadi.