5 Indian, 1 Chinese firms in race for GAIL project

Six firms, including one from China, are in the race to build the much-touted Kochi-Kootanad-

Managalore-Bengaluru pipeline project of GAIL (India). The pipeline would give a lease of life to

Petronet LNG’s 5 million tonne per annum re-gasification terminal at Kochi, which remained

underutilised at a mere 5% capacity, due to the lack of an evacuation route.

Sources told FE that for the Kochi–Kootanad–Managalore-Bengaluru pipeline project, the

countdown has started as bids were invited for two sections of the stretches of 220 km covering five

districts of Kerala — Ernakulam, Thrissur, Palakad, Mallapuram, and Kozhikode.

“The estimated cost for this stretch is about Rs 300 crore, of which six bids have been received for

the 90-km section from Punj Lloyd (PLL), Corrtech, Kalptaru Power Transmission (KPTL), JSIW, IL&FS

and China Petroleum Bureau (CPP), while for the other section of 130-km PLL, KPTL, JSIW, IL&FS and

CPP have submitted bids,” a senior official privy to the development told FE. “The bids are being

evaluated and the job will be awarded in August 2016, and the work will commence in September-

October this year,” the official added. In January 2014, then Prime Minister Manmohan Singh

unveiled a Rs 4,500-crore LNG terminal at Puthuvype in Kochi set up by Petronet LNG. The terminal

became idle due to the non-laying of the pipeline by GAIL due to local protests.

The laying of the pipeline would raise the utilisation of Petronet’s terminal to at least 50%, in

addition to making natural gas available to Kerala and parts of Karnataka. Land acquisition issues and

opposition by farmers and the Tamil Nadu government had disrupted a key section of GAIL’s

ambitious Rs 3,400-crore Kochi-Kuttanad- Bengaluru-Mangalore project, which is passing through

farmland in seven districts of the state.

NGS INDIA