PSL Awarded Prestigious Contract worth Rs.135 crores by GAIL India

PSL Ltd has announced that the Company has now been awarded with a prestigious contract valuing Rs 135 Crores from GAIL India, owners and constructors of Dabhol - Panvel High Pressure Gas Transmission Pipeline Phase 2. The said contract is for supply of 30" diameter line pipe for 124 K.M. spiral saw weld pipes.

This Project will be completed with the facilities at Company's recently commissioned State of the Art Two Step Pipe Mill at Kandla in Gujarat to cater to high pressure oil & gas requirement both in the domestic as well as international market. The HSAW pipe mills established by the Company at Kandla, Chennai & Vizag having an aggregate capacity exceeding 1 million ton and can meet similar global requirements.

This contract acknowledges the Company's ability to deliver line pipes including anti-corrosion pipe coatings in this upcoming market while recognizing its commitment to delivery schedules & quality in such pipeline projects.

The Company had in recent past received orders for and completed supplies against the following three previous and connected segments of this nationally important pipeline :-

- Dahej - Uran Phase 1
- Dahej - Uran Phase 2
- Dabhol - Panvel Phase 1

Receiving the above order for Dabhol - Panvel Phase 2, substantiates the Company's virtual hold over competition in this globally tendered domestic gas pipeline supply segment.

Moreover the subject order from GAIL and an earlier procured order from GSPL for "Baruch-Jamnagar Pipeline (BJPL) Project" taken together clearly establishes the Company's competitive capability since both the tenders were keenly contested Global Tenders with participation from Indian, Chinese and few other International Pipe Manufacturers. The Company can therefore expect a substantial portion of processed Gas Pipeline network to be built by GAIL, GSPL & other domestic players who all have recently announced their detailed plans worth over 20,000 Crores for building this Gas Pipeline Transmission Network.

The abovementioned four successive orders secured by the Company from GAIL exceeds a total value of Rs 800 Crores. The Company has successfully demonstrated its ability for timely completion in first three orders.

With these present orders in hand the Company's un-executed orders book now stands in excess of Rs 2300 Crores, virtually all of which the Company expects to execute in current Financial Year itself.

Source : Equity Bulls

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