Dilip Buildcon Limited (DBL) has received a Letter of Award (LOA) for securing authorization to lay, build, operate, or expand a petroleum product pipeline for the transportation of Air Turbine Fuel (ATF) in Gujarat. The authorization has been granted by the Petroleum and Natural Gas Regulatory Board (PNGRB), the statutory body regulating petroleum and natural gas infrastructure in India.
The project involves the development of an ATF pipeline from Navgam, Gujarat to the Sardar Vallabhbhai Patel International Airport in Gujarat. Under the terms of the authorization, DBL will act as the exclusive entity responsible for financing, constructing, operating and maintaining the pipeline infrastructure. The company will also be entitled to levy and collect transportation tariffs for ATF up to the designated delivery point for a period of 25 years.
The project will be executed through a Special Purpose Vehicle (SPV), in which Dilip Buildcon Limited will hold 100% equity. This structure enables the company to independently manage the long-term development and operational aspects of the pipeline asset. The Engineering, Procurement and Construction (EPC) works related to the project are proposed to be awarded to DBL itself, creating a business opportunity valued at approximately ₹124.00 crore, excluding GST. The EPC component is expected to be executed over a period of 24 months.
The contract has been awarded by a domestic entity and qualifies as a domestic project. As per the company’s regulatory disclosure under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the promoter or promoter group companies do not have any interest in the awarding authority. The project also does not fall under related party transactions.
