IVRCL Secures $209 Million Infrastructure Contract For India's Dahej Special Economic Zone

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Researched by Industrial Info Resources (Sugar Land, Texas)--IVRCL Infrastructure & Projects Limited (Hyderabad, Andhra Pradesh) has secured a $209 million contract from ONGC Petro Additions Limited (OPaL), a subsidiary of Oil & Natural Gas Corporation (BOM:500312) (ONGC) (Dehradun, Uttarakhand), for the upcoming Dahej Petrochemicals Complex in Gujarat. OPaL, which functions as a special-purpose vehicle for the $3.4 billion Dahej special economic zone, awarded the contract to IVRCL on a lump-sum turnkey basis. This contract marks IVRCL's first foray into the oil and gas sector.

IVRCL will undertake infrastructure development including accelerated soil stabilization across an area of 1,314 acres in 21 months. This includes earth excavation of nearly 3.7 million cubic meters and soil stabilization of 8.6 million cubic meters. IVRCL will have to seek approval on the soil to be used from the project's consultant, Foster Wheeler (NASDAQ:FWLT) (Clinton, New Jersey).

Last month, ONGC entered into a memorandum of understanding with Torrent Energy Limited (Ahmedabad, Gujarat) to develop a dedicated 1,500-megawatt (MW) gas-fired power project to supply electricity to the special economic zone. The state government of Gujarat also designated Torrent as a co-developer of the special economic zone. Earlier this year, Torrent had invited bids from domestic and international players to set up a 400-MW gas-fired power plant in the special economic zone. Torrent will initially set up a capacity of 300 MW in the first phase, which is scheduled to be commissioned by 2011-12.

ONGC will also set up an extraction plant to procure ethane and propane from liquefied natural gas for further use as basic feedstock for its petrochemicals complex. Toyo Engineering India Limited (Mumbai) bagged the turnkey contract for the $165 million extraction project, which was due to be commissioned in May 2008.

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