Stories
Dilip Buildcon Surges After Securing Rs 1800 Crore LPG Pipeline Project
- •Dilip Buildcon has received approval from the Petroleum and Natural Gas Regulatory Board to lay and operate an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh.
- •The estimated cost of the project is around Rs 1800 crore excluding GST, and the pipeline construction is scheduled to be completed within three years.
- •The company will form a 100 percent owned Special Purpose Vehicle to handle design, financing, construction, operation, and maintenance of the project.
- •Dilip Buildcon will have the right to operate the pipeline for 25 years as a common carrier, earning revenue based on the fixed transportation tariff.
- •Following the announcement, the stock rallied by about four percent to reach Rs 415.2 in an otherwise falling market.
Key Questions Answered
Dilip Buildcon received approval from the Petroleum and Natural Gas Regulatory Board to lay and operate an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh, with an estimated project cost of around Rs 1,800 crore excluding GST. The construction is to be completed in three years, after which the company will operate it for 25 years.
Despite a declining market trend, the stock rose to around Rs 415.2 from its previous close of Rs 400.8 after the news broke, marking a gain of approximately 4%.
The company will form a 100% owned Special Purpose Vehicle to handle the design, financing, construction, operation, and maintenance of the pipeline. It will operate as a common carrier to transport LPG to bottling plants, though Dilip Buildcon itself will not purchase, sell, or trade LPG.
