Dilip Buildcon Secures ₹1,800 Crore LPG Pipeline Opportunity
Dilip Buildcon Ltd has received a Letter of Intent (LOI) from the Petroleum and Natural Gas Regulatory Board (PNGRB) for developing an LPG pipeline connecting Paradip in Odisha with Raipur in Chhattisgarh, with proposed EPC works valued at approximately ₹1,800 crore, excluding GST.
The project will be implemented through a Special Purpose Vehicle (SPV) in which Dilip Buildcon will hold 100% equity, while the EPC contract is proposed to be awarded to the company and executed over 36 months. Under the LOI, the authorised entity will receive an exclusive licence to develop, operate or expand the pipeline, with operations planned for 25 years after the three-year construction period.
Through the SPV, Dilip Buildcon will handle the design, financing, development, construction, operation and maintenance of the pipeline, subject to regulatory approvals. The infrastructure will transport LPG to bottling plants of various Oil Marketing Companies (OMCs) and is proposed to function as a Common Carrier, allowing eligible users to access its capacity under the PNGRB framework.
Revenue will be generated through the applicable LPG transportation tariff. Importantly, Dilip Buildcon will not participate in LPG procurement, trading, distribution or sales and therefore will not carry the associated commercial risks. The contract is from a domestic entity, with no promoter or promoter-group interest in PNGRB, and the transaction is not classified as a related-party transaction.