labels: asian development bank, engineering, psl, water
PSL bags order to supply weld pipes for Kutch water projectnews
Pradeep Rane
25 November 2003
Mumbai: PSL Ltd has bagged a Rs 143-crore order from the Gujarat government to supply spiral weld pipes for their water project undertaken in the Kutch area. This is one of the largest water projects of its kind undertaken by the Gujarat government in the area, which is being funded by Asian Development Bank (ADB).

The turnkey water pipeline order includes setting up a new water pipeline network through the Kutch area, which will help in substantially improving the perennial water problem in these areas. The ADB-funded project is scheduled for completion in around five months.

Says PSL managing director Ashok Punj: "The order represents an enhanced business relationships with our customers and clearly illustrate the company''s commitment in project execution competencies in a most cost-effective manner and providing quality as per international standards."

The scope of the project includes manufacturing and supply of approximately 75,000 Mt of pipes in various diameters to be manufactured in its five state-of-the-art-manufacturing facilities at Kandla. PSL, the largest capacity steel pipe manufacturer in India, with nine pipe mills at strategic locations around the country, is well equipped to complete the project in designated five months.

The five spiral weld pipe mills have concrete coating and lining plants near Kandla with a capacity exceeding 375,000 MT every year. These pipelines also include the recently commissioned pipeline in Kandla, which will commence commercial production in December 2003 with the current project.

The company''s gross profit rose to Rs 11 crore for the quarter ended 30 September 2003, up from Rs 7.47 crore during the same period last year, a phenomenal growth of 47 per cent. PSL is confident of maintain this growth trend through the financial year in keeping with its strong order backlog of around Rs 1,095 crore, including the current order, along with projects received and under execution.

The total bidding for the project was divided into four lots to increase price competitiveness to solicit international and domestic bids from leading suppliers. PSL emerged as the lowest bidder while submitting a substantial responsive bid as per ADB guidelines and procedures.

PSL, the flagship company of the PSL group, is engaged in various types of pipe coating and pipe manufacturing at Daman, Kandla, Nani Chirai, Chennai and Vishakhapatnam. PSL has virtually doubled the earlier existing capacity of its pipes division with a capacity addition of three new pipe mills. Consequently, the aggregate pipe manufacturing capacity of PSL now stands at a proud 5,25, 000 Mt a year, making the company the largest capacity pipe manufacturer in the country.

In its coating business, the company undertakes coal-tar enamel coating, internal epoxy coating and three-layered polyethylene coating. These coated pipes are used for transportation of gas, oil, water and petroleum. PSL also manufactures spirally submerged arc welded (SSAW) pipes. The list of PSL''s clientele includes ONGC, GAIL, HPCL, BPCL and IOC.

 

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PSL bags order to supply weld pipes for Kutch water project