Punj Lloyd bags contracts for IOC's Refinery project

Punj Lloyd Ltd has announced that the Company has secured two contracts for Indian Oil Corporation's is refinery project being implemented at its complex at Haldia (West Bengal). The Contracts awarded are on EPC basis for the Hydrocracker (capacity 1.7 MMTPA) and Hydrogen Generation Unit (capacity 70,000 TPA). The combined value of both the orders is Rs 1,163 crore. the value for the Hydrocracker contract is Rs 864 Crore while contract for Hydrogen generation unit is valued at Rs 299 crore, the scope for both the packages entails engineering Procurement, Construction and Commissioning on a single point responsibility basis.

The Hydrocracker turnkey contact is the largest EPC contract for a process unit awarded to the Company and will also make the Company the first Indian Company to execute a hydrocracker project on an EPC basis. With this, the Company has joined the select league of global EPC contractors to work on a Hydrocracker unit on an EPC basis. Hydrocracker is one of the complex process units in refinery with pressures and temperatures like 250 bar and 300-350 deg C respectively.

The project for the hydrocracker unit is scheduled to be completed in 33 months while that for hydrogen generation unit is scheduled to be completed in 24 months.

Commenting on bagging prestigious contracts from IOCL, Mr Atul Punj, Chairman of the Company said, "Punj Lloyd has come a long way ever since it bid for the mechanical construction of its first hydrocracker project at Mathura refinery. This IOCL contract will give Punj Lloyd the opportunity to exhibit its expertise as both the projects are complex in nature in terms of technicality involved and in terms of execution".

With this, the order backlog for the group is Rs 12,590 crore. This is the total value of unexecuted orders as of September 30, 2006 and new orders received till date.

Source : Equity Bulls

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