Dilip Buildcon Limited has received a Letter of Intent (LoI) from the Petroleum and Natural Gas Regulatory Board (PNGRB) for the grant of authorisation to lay, build, operate or expand an LPG pipeline connecting Paradip in Odisha with Raipur in Chhattisgarh.
Under the project, PNGRB will grant an exclusive licence to Dilip Buildcon to develop the pipeline infrastructure for transportation of LPG, including financing, construction and operation. The company will also be entitled to levy and collect the applicable transportation tariff up to the designated delivery point.
The project is estimated to provide an Engineering, Procurement and Construction (EPC) business opportunity of approximately ₹1,800 crore, excluding GST. The EPC works are proposed to be awarded to Dilip Buildcon and are scheduled to be completed within 36 months.
The pipeline will be developed through a Special Purpose Vehicle (SPV), in which Dilip Buildcon will hold 100% equity. The company will undertake the design, financing, development, construction, operation and maintenance of the proposed infrastructure, subject to the necessary approvals and regulatory requirements of PNGRB.
Following completion of construction, the project will have an operating period of 25 years. Revenue will be generated through the applicable Petroleum and Petroleum Products Pipeline Transportation Tariff for the movement of LPG.
The proposed pipeline is intended to transport LPG to the bottling plants of various oil marketing companies (OMCs). The infrastructure is expected to replace part of the existing road-based movement of LPG through tankers, reducing dependence on road transportation and supporting safer movement of the fuel.
The pipeline is also proposed to function as a Common Carrier under the applicable PNGRB framework. Eligible OMCs and other users will be able to access the available pipeline capacity in accordance with the regulatory provisions.
Dilip Buildcon clarified that its role through the SPV will be limited to developing and operating the LPG pipeline infrastructure and providing transportation services. The company will not be involved in the procurement, trading, distribution or sale of LPG and will not bear the associated commercial risks related to LPG procurement and marketing.
According to PNGRB’s project documents, the proposed Paradip-Raipur LPG pipeline is approximately 555 km long and has been planned to serve six LPG bottling plants across Odisha and Chhattisgarh. The connected plants include BPCL facilities at Khurda, Bolangir and Raipur, an IOCL plant at Raipur and HPCL plants at Jatni and Raipur.
Dilip Buildcon’s project portfolio lists the Paradip-Raipur LPG pipeline at approximately 715 km and identifies it as an ongoing project under PNGRB.