Dilip Buildcon Limited (DBL) has received a Letter of Award (LOA) for the development of an Air Turbine Fuel (ATF) pipeline connecting Navgam to Sardar Vallabhbhai Patel International Airport in Gujarat. The project involves securing an exclusive 25-year license for the infrastructure. DBL will hold 100% equity in the Special Purpose Vehicle (SPV). The EPC component of the project is valued at approximately INR 124.00 crore (excluding GST) and is expected to be completed in 24 months.
Authorization Secured for Strategic Pipeline Project
Dilip Buildcon Limited (DBL) is pleased to announce that it has been selected as the successful bidder for a crucial infrastructure mandate involving the development of a Petroleum or Petroleum Product (Air Turbine Fuel / ATF) Pipeline. The route for this pipeline is set to run from Navgam, Gujarat, to Sardar Vallabhbhai Patel International Airport, Gujarat.
Project Structure and Duration
The project entails securing an exclusive license from the regulatory authority to undertake the authorization, construction, financing, and operation of the pipeline infrastructure. The tenure of this license is established for a period of 25 Years, during which DBL can levy and collect tariffs for ATF transportation.
The entire project will be executed through a Special Purpose Vehicle (SPV), wherein DBL will retain 100% equity. Furthermore, the associated Engineering, Procurement, and Construction (EPC) works are slated to be awarded back to DBL.
Financial Implication and Timeline
The estimated business opportunity arising from the EPC scope is substantial, valued at approximately INR 124.00 crore (excluding GST). This segment of the work is targeted for execution over a period of 24 months from the award date.
It is confirmed that this contract is a Domestic Entity award and does not involve any related party transactions, ensuring the agreement is conducted at an “arm’s length” basis.
Source: BSE
