Kalpataru and CPPB for LPG pipeline work

Vol 19, PW 13 (10 Mar 16) News in Brief

Kalpataru Power Transmission and China Petroleum Pipeline Bureau (CPPB), the only two bidders, are likely to win two sections of a re-tendered IndianOil 10-inch diameter LPG pipeline project from the Paradeep refinery in Orissa to Haldia in West Bengal.

When price bids were opened on March 2, Kalpataru bid lowest quoting Rs119cr ($17.7m) for the 170-km Part A of this project and CPPB came close behind with Rs121cr ($18m). For the nearly 30-km Part B, the roles were reversed - CPPB bid lowest at Rs69cr ($10m) and Kalpataru was marginally behind with Rs70cr ($10.4m).

IOC wants work completed within 18 months of the LoA. Yet confusion persists about whether IOC will actually issue LoAs or has issued this tender only to pressurise Corrtech and JSIW into completing pipeline sections where they were criticised for moving too slow.

IOC carved Parts A and B from the 700-km project that was earlier awarded to Corrtech, JSIW and Jaihind Projects.