Essar Constructions (India) Ltd, or ECIL, a subsidiary of Essar Projects Ltd, has won a Rs186 crore contract from Bharat Oman Refineries Ltd for laying a stretch of a proposed crude pipeline between Vadinar in Gujarat to Bina in Madhya Pradesh, where the Indo-Oman joint venture (JV) is setting up a refinery.
The Essar subsidiary beat competing bids from leading contenders—including Ukraine’s NaftoGas, Stroytransgaz from Russia, and India’s Punj Lloyd Ltd and Kalpataru Power Transmission Ltd—to be awarded the contract to build a 504km part of the Vadinar-Bina pipeline, which is 930km long.
Bharat Oman Refineries is a JV of Bharat Petroleum Corp. Ltd (BPCL) and Oman Refineries Ltd.
A senior Essar Group executive, who did not want to be named, confirmed the development while a BPCL spokesperson declined to comment for this story.
The 14-month-long project involves laying out a 930km crude oil pipeline from Vadinar to Bina; ECIL’s contract will be from Vadinar to the Madhya Pradesh border.
This is the first time that ECIL bid alone for a project of this size. Until now, it had bid for pipe laying projects with global majors such as Stroytransgaz and DQE International of China.
ECIL has laid more than 2,000km of pipelines for petroleum products for firms such as Indian Oil Corp. Ltd (IOC), Hindustan Petroleum Corp. Ltd and Gujarat State Petronet Ltd (GSPL).
The company has also laid cross-country pipelines for drinking water, besides construction of marine pipelines.
In July 2004, ECIL won a 683km product pipeline contract from IOC connecting Chennai, Tiruchirapalli and Madurai.
And, in May the following year, it tied up with DQE International on a Rs129 crore contract for laying a high pressure gas pipeline between Dahej in Gujarat and Uran in Maharashtra for GAIL (India) Ltd.
ECIL also won the Rs198 crore contract from GSPL for laying a gas pipeline in Baroda-Ahmedabad-Kalol section in the state.
Essar Projects, ECIL’s parent, is headquartered in Dubai and owns a fleet of advanced construction equipment used in large projects.
ECIL competes with Indian engineering and construction companies such as Larsen & Toubro Ltd and Hindustan Construction Co. Ltd, which are leading players in the crude and gas pipe laying space.