Gujarat Petronet reassures contractors

Vol 18, PW 17 (23 Apr 15) News in Brief
     

Gujarat State Petronet has been proposing three cross-country gas pipelines for the past six years.

So it's hardly surprising pipeline contractors doubt these projects will ever materialise. Some of them categorically told GSPL officials attending the American Society of Mechanical Engineers (ASME) conference in Delhi on April 17 and 18 that they won't extend their bid bonds beyond May this year.

GSPL received bids to lay the 1670-km Mehsana to Bhatinda pipeline in two sections on May 19, 2014; the 740-km Bhatinda to Jammu pipeline in two sections on May 22, 2014; and the 1881-km Mallavaram to Bhilwara pipeline in three sections on May 26, 2014. “Bid bonds for each section are Rs5cr ($796,088),” we hear.

“Extending them costs money.” GSPL has informally assured contractors it will open bids for some sections by the end of this month.

Bidders include L&T, Kalpataru, Essar Projects, Punj Lloyd, KazStroy, and Fernas. GSPL (52%) shares the projects with IOC (26%), BPCL and HPCL (11% each).