The Hindu : Business : EIL, Tata Projects mull joint venture

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Tuesday, Dec 18, 2007
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EIL, Tata Projects mull joint venture

Special Correspondent

To undertake EPC contracts in India and abroad

EIL has an order book of Rs. 5,000 crore
Exploring bitumen plant contract in Oman

NEW DELHI: State-run Engineers India Ltd (EIL) and Tata Projects Limited are planning to join hands and form a joint venture company for doing engineering consultancy and construction projects in India and abroad.

Official sources in the Petroleum and Natural Gas Ministry said that EIL had already signed a memorandum of understanding (MoU) with Tata Projects for floating a 50:50 joint venture company for undertaking engineering, procurement and construction (EPC) contracts.

The proposal, including the contents of the MoU, were now pending before the Ministry for final approval after which a formal agreement would be put in place, sources added.

EIL is one of the leading public sector undertakings that has been in the forefront of providing technical and consultancy services to various engineering projects, including those in the oil and gas sector in India and abroad.

Sources further said that the joint venture was likely to start with an authorised capital of Rs. 15 crore. According to preliminary details, EIL Chairman will head the joint venture as non-executive chief, while Tata Projects will nominate the Managing Director.

At present, EIL has an order book of Rs. 5,000 crore compared to Rs. 2,000 crore in March 2007.

Interestingly, EIL is also doing engineering consultancy for Hindustan Petroleum Corporation Limited-Mittal combine’s Rs. 19,000 Bhatinda refinery coming up in Punjab as well as Bharat Petroleum Corporation Limited’s Bina refinery in Madhya Pradesh.

EIL is exploring an EPC contract for a bitumen plant in Oman besides construction contract for Indian Oil Corporation’s $6-billion Paradip refinery-cum-petrochemical complex in Orissa.

In November last year, EIL had joined hands with Punj Lloyd in a consortium to make a $1.6-billion bid for a contract to upgrade and modernise the Azzawiya refinery in Libya.

The company has nearly 14 strategic alliances with equipment and materials manufacturers besides technology developers.

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