Fabtech wins Oil India Madhuban LoA

Vol 19, PW 21 (30 Jun 16) News in Brief

After a tense legal battle, Pune-based Fabtech Projects & Engineers has received the LoA from Oil India to set up a Secondary Tank Farm (STF) at Madhuban in Assam.

Oil India issued the Rs432.99cr ($64m) LoA on June 13, giving Fabtech 24 months to install six floating roof tanks to handle 40,000 kilolitres of oil; separators; a bath heater; compressors; a gas-based boiler; a gas-based power station; and dehydration and effluent treatment facilities. Fabtech bid lowest when price bids were opened on November 20, 2015.

But Oil India moved it to second place, after elevating BGR Energy to first place over Service Tax calculations. Aggrieved, Fabtech approached the Guwahati High Court and on February 25 Justice AK Goswami told Oil India to reconsider.

Separately, Fabtech received a LoA from BPCL on February 29 to set up three 1400-tonne LPG tanks at Palakkad in Kerala for Rs36.71cr ($5.4m). It received an LoA on February 12 from BPCL's Assam subsidiary Numaligarh Refinery to install four 1000-tonne LPG tanks for Rs56.70cr ($8.4m).