Megha wins big in Barmer refinery tenders

Vol 24, PW 16 (01 Jul 21) News in Brief

Megha Engineering has bid lowest in three of four big contracts at HPCL's upcoming 9m t/y Barmer refinery in Rajasthan.

In the EPCC-9 package to set up a polypropylene facility, Megha bid lowest at Rs2888cr ($389m) on June 21 (2021) for two 490,000 t/y capacity trains and a 59,000 t/y Butene-1 unit, using Lummus technology. Tecnimont came second, bidding Rs3465cr ($467m) and L&T third, quoting Rs3595cr ($484m).

For EPCC-8, where HPCL wants two 416,000 t/y units producing low and high-density polyethylene, Megha again quoted lowest at Rs3065cr ($412m), followed by Tecnimont quoting Rs3193cr ($430m), L&T quoting Rs3613cr ($486m) and Toyo Engineering, quoting Rs4,398cr ($592m). Polyethylene is a popular plastic used in grocery bags, shampoo bottles, toys and even bulletproof vests.

Technip bid lowest for the EPCC-2 package to construct a motor spirit block quoting Rs1291cr ($174m). Megha came second quoting Rs1404cr ($189m), Toyo third quoting Rs1457cr ($196m), followed by Tata Projects (Rs1459cr or $196.4m), L&T (Rs1497cr or $201m) and Tecnimont (Rs1810cr or $244m).

Megha's third win came by chance on June 26 when HPCL opened bids for the EPCC-6 package. Tecnimont quoted lowest at Rs1361cr ($183m), followed by Megha quoting Rs1362cr ($183.3m), L&T quoting Rs1600cr ($215m) and Tata Projects quoting Rs1458cr ($196m).

"Even though Tecnimont bid lowest," we hear, "Megha won because it was the lowest bidder after post-operational expenditure evaluation."