Shares of Dilip Buildcon gained as much as 3.6 per cent in intraday trading on Wednesday after the company received approval to develop an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh. The project, valued at approximately Rs. 18 bn, is scheduled for completion over three years.

The company received the Grant of Authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate and expand the pipeline. The regulator has granted Dilip Buildcon an exclusive licence to develop, finance, construct and operate the infrastructure.

The project will be implemented through a special purpose vehicle (SPV), which will be a wholly owned subsidiary of Dilip Buildcon. The core engineering, procurement and construction (EPC) work is proposed to be awarded directly to the company.

Revenue during the operating period will be generated through regulated transportation tariffs for LPG delivered to designated points. The pipeline will operate under the PNGRB’s Common Carrier framework, providing eligible Oil Marketing Companies (OMCs) and other users with open access to available capacity.

Dilip Buildcon’s role through the SPV will focus on infrastructure development and transportation services, limiting its exposure to risks associated with LPG procurement, trading, distribution and marketing. The pipeline is intended to transport LPG directly to OMC bottling plants and replace road-based movement using fuel tankers, which the company said would improve road safety.

The stock’s gains extended into a second consecutive session after it ended a three-session losing streak on Tuesday. After rising 3.6 per cent, the shares pared gains to trade 1.52 per cent higher at 11.08am. The stock has declined more than 14 per cent year to date and 21 per cent over the past 12 months, while remaining 32.2 per cent below its 52-week high of Rs. 538.20 recorded on 7 October last year.