PSL bags Rs 343 cr order in Gujarat

Part of Gujarat Water Resources Development Corp's project to eliminate water scarcity

PSL Ltd, one of the largest capacity steel pipe manufacturers in the country, has bagged a Rs 343 crore order from Larsen and Toubro (L&T).

This is for the supply of spiral welded steel pipes, coating and other related works pertaining to water projects undertaken by the Gujarat Water Resources Development Corporation Ltd (GWRDC) and the National Water Resources Development Council (NWRDC).

The current order is for the Sujalam Sufalam Scheme initiated by the Gujarat government to solve the water problem in 10 districts in the state. The order is scheduled to be completed by the end of the next financial year.

Meanwhile, PSL has informed the Bombay Stock Exchange that it will allot 50 lakh equity shares of Rs 10 each on a preferential allotment basis. The final decision would be taken at the extra ordinary general meeting scheduled for April 7, 2005.

"We are extremely delighted to be associated with GWRDC again for carrying out their projects. We managed to get this project due to the close proximity of our plants to the site where the pipelines are to be laid. Our working relationship with both GWRDC and L&T has also played an important part in us bagging this order," said Ashok Punj, managing director, PSL Ltd.

As per the work order, the company will supply API grade bare line as per Indian Standard IS: 3589, 12 meters in length along with external and internal anti-corrosion coating systems and other allied activities like girth weld joint coating. The company would supply approximately 85,000 tonne of spiral welded steel pipes to L&T.

PSL has also worked with Gujarat Water Supply Board for the Naramada Main Canal to Dharoi Reservoir pipeline project in 2003 for manufacture and supply of 2,100 mm diameter pipes along with anti-corrosion protection and laying of pipes in association with a local joint venture.

PSL Ltd, 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 Visakhapatnam.

The company is all set to cross the one million metric tonne (MT) per annum with a capacity addition of the new hi-tech two-step pipe mill. At present, the aggregate pipe manufacturing capacity of PSL Ltd stands at 6,75,000 MT per year with nine operating pipe mills, making the company the largest capacity pipe manufacturer in the country.