+
Dilip Buildcon Gains on Rs. 18 bn LPG Pipeline Approval
OIL & GAS

Dilip Buildcon Gains on Rs. 18 bn LPG Pipeline Approval

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Madhya Pradesh Plans Airport Every 150 Km, Airstrip Every 75 Km

The Madhya Pradesh government plans to establish an airport every 150 km, an airstrip every 75 km and a helipad every 45 km, according to the state aviation department. Airports being developed in Ujjain and Shivpuri are expected to take the state’s airport count to 10. The government stated that Madhya Pradesh currently has eight airports in eight cities. The locations named by the department include Indore, Bhopal, Jabalpur, Gwalior, Khajuraho, Rewa and Satna. The state also has more than 20 airstrips and 220 helipads, while permanent helipads are planned in all 230 Assembly constituencies..

Next Story
Infrastructure Transport

West Bengal Plans Four Airports for 2028 Completion Under UDAN

West Bengal will develop four new airports under an agreement signed between the Union Civil Aviation Ministry and the state government, with all facilities targeted for completion by 2028. Union Civil Aviation Minister K Rammohan Naidu said the airports would be located at Charra in Purulia, Kalaikunda in Paschim Medinipur, Balurghat in Dakshin Dinajpur and Hasimara in Alipurduar. The project is part of the Centre’s regional connectivity UDAN programme. The Union government has committed Rs. 290 bn for West Bengal’s aviation sector over the next decade, while the state government will pro..

Next Story
Infrastructure Transport

Mumbai Airport Bars Russian Airlines as Agent Seeks Ministry Intervention

Mumbai airport has stopped accepting cargo booked on Russian flag carrier Aeroflot, disrupting shipments and prompting the airline’s cargo sales agent, Delmos Aviation, to seek intervention from the Ministry of Civil Aviation. The restrictions also affect cargo booked on Volga-Dnepr Airlines, according to a letter submitted by Delmos Aviation to the ministry on September 30. Aeroflot operates daily flights between Moscow and Delhi and runs a winter seasonal service to Goa. Bonded cargo from Mumbai and other cities is transported by road to Delhi before being flown to Russia. The agent said t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code