EIL bids low for IOC Paradip PMC
Engineers India (EIL) has bid the lowest for two IndianOil tenders to select project consultants for its proposed Rs61,077cr ($7.6bn) petchem project at its Paradip Refinery in Orissa.
IndianOil opened price bids on October 21 (2024) for Managing PMC (MPMC or PMC-2), and sole valid bidder EIL quoted Rs710cr ($88m), while rival Chavan Consulting was disqualified on technical grounds. On October 17 (2024), when IndianOil opened price bids for PMC-1, EIL was the lowest bidder at Rs362cr ($45m), while Technip bid Rs472cr ($59m).
IndianOil received bids for both contracts on August 30 (2024). IndianOil wants the PMC-1 to oversee the setting up of facilities to produce 1.5m t/y polymer grade ethylene and 500,000 t/y High-Density Polyethylene (HDPE) while the MPMC/PMC-2 will manage the entire petchem project and the setting up of units to produce 530,000 t/y polypropylene, 208,000 t/y isopropyl alcohol, and 600,000 t/y ethylene dichloride/vinyl chloride monomer plus utilities for the entire project.
Whoever is selected as MPMC/PMC-2 will also issue tenders to select PMC-3, who will oversee the setting up of cumene and phenol units, each of 334,000 t/y; and PMC-4 who will be responsible for setting up the swing unit (650,000 t/y of HDPE/Linear Low-Density Polyethylene) and the 61,000 t/y Butene-1 unit. Feedstock for the Paradip petchem complex will be naphtha from IndianOil's Paradip, Haldia and Barauni refineries and IndianOil subsidiary Chennai Petroleum; kerosene, R-LNG and off-gas from the Paradip refinery; and imported propane, butane and hexene.
IndianOil wants PMC-1 to complete Phase-1 of its scope of work within eight months and Phase-2 within 57 months of the LoA. The MPMC/PMC-2 should complete Phase-1 within 10 months and Phase-2 within 57 months of the LoA.
Phase-1 involves tendering all materials and work packages, while the final award of these contracts will happen in Phase-2 after the IndianOil board makes a Final Investment Decision.