City-based Fabtech Projects & Engineers Limited, an engineering, procurement, construction and commissioning company has bagged two major contracts worth Rs 390 crore from the public sector companies Gas Authority of India Ltd (GAIL) and Indian Oil Corporation Ltd (IOC).
The company has bought 15 acres of land near its existing works at Chakan to set up manufacturing facilities for the machinery and equipment required for the oil and gas sector and for the production of nuclear power station items. Investments worth Rs 85 crore has been made in creating this infrastructure. This new plant will be ready in the next 12-15 months.
The contract from GAIL is worth Rs 230 crore and is about installing cross-country pipeline from Coimbatore to Bangalore with 24-inch diameter and 340-kilometer length for the transmission of natural gas from Kochi Terminal.
The IOC contract worth Rs 160 crore is for creating LPG storage that involves construction of LPG Mounded Storage System at various locations in the country with five locations in North East, one in Central India and two in southern part of the country.
Speaking on this, N P Hariharan, joint managing director, Fabtech said, "These two orders are indeed very significant for us as the order from GAIL marks our foray in the pipeline business and we foresee good opportunities for Fabtech in this sector, which is likely to grow steadily in the next 3-5 years, as the Indian Government is planning to set up a national gas grid having over 10,000 kilometers of pipelines. Secondly, the cross-country pipelines business from the oil and gas sector is also expected to be more than Rs 15000 crore."
Fabtech is executing the cross-country pipeline project for GAIL in consortium with Zangas, Russia, which will be providing the required technical services for the project. The current order book of Fabtech is of Rs 1800 crore.
