Don't we have skills to construct a cross county pipeleine

statesman

It is sad to note that RIL is trying their level best to award a contract to a chinese company to construct a cross country pipe line from Kakinada to Jamnagar. This is also against their continuous assurences to provide the gas to AP first. Please have the latest news about their trials.

RIL proposal for expedited visa clearance of 1,800 Chinese nationals to work on D-6 cross-country pipeline: New twist to the controversy

Dec. 13: The controversy over the proposal to modify work visa requirements and permit Chinese nationals to construct a Reliance Industries Ltd (RIL) pipeline in the country refuses to die down. RIL has been lobbying with the government for expedited visa clearance for 1,800 Chinese nationals to construct a cross-country pipeline from Reliance Industries Ltd's (RIL) KG-DWN-98/3 Block to its Jamnagar Refinery in Gujarat. The private sector oil giant had given the mandate for execution of the project to its subsidiary, Reliance Transportation Infrastructure Ltd, which had awarded the pipeline laying contract to China Petroleum Pipeline International (CPPI) through a global tender for implementation by the 2009 deadline. However, large scale expatriation of Chinese labourers to the country has ruffled feathers in Raisana Hill. According to the Ministry of Home Affairs, foreign nationals traveling to India for any kind of assignment in foreign companies need to come on an 'E-Visa' and not a 'B-Visa', as has been sought by CPPI. Furthermore, the stringent norms for granting an E-Visa dictate that the requests for an employment visa for jobs for which a large number of qualified Indians are available should not be considered and under no circumstances should an employment visa be granted for routine jobs. Apparently, the extension of an E-Visa is only applicable to foreigners who are employed at senior levels. The controversy has also assumed unsavoury shades after a leakage of information to RIL, pertaining to the deliberations over the visa proposal, was made public, which will no doubt temper the government's initial inhibitions to the request.
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STATESMAN

Bystander · Telugu Teja Joined: 13 Oct 2004 Posts: 438

Dodsal builds several cross country pipelines all over Gulf, so is Punj Lloyd. This tender would have gone in global competetive bidding. Under WTO regime, well we will have to honor such contracts coming out in the future as well. On Global scale many Indian companies are benefitting too due this globalization. Besides, I was also aghast to know, the way RIL deals with its contractors, making them work on cost plus basis, which robs any innovative upcoming of small timers.
I am some how not too comfortable the speed with which RIL is building this pipeline. I may sound cynical and for many it may sound logical, as they would want to feed their huge need in Jamnagar. But is there something more sinister? Oil & Gas pumping thefts are often resorted to by E&P Companies, especially if they are both same producer and user. More easy if they also own the distribution network. Here there are royalties to be paid on per barrel or what ever measuring scale taken up. Pumping out more to their own destination, a larger quantity of petroproduct , but showing less on paper, and hence paying much less on royalties and taxes is very much possible in this situation. Incidentally other other company GSPC which holds good finds is also another Gujju Company. Clandestine syphoning is common in oil & gas industry.
And also it is important to know estimated reserves and type of contract that governs the E&P deal between govt of Indian and the E&P Compnay, in this case RIL & GSPC. Most E&P companies get to pump out finds at lesser charges or at times even free during for some initial period. I do not know what the agreement with RIL by Govt India. Then there is this issue of royalty share of local area, which in this case AP state. Not sure how the offshore finds are with respecti royalty share to local area.
So, Mukesh manages to have all under his umbrella and could pump out most of finds in inital years, he is likely to benefit enormously at the cost of Nation as whole, at the cost of local area AP. This urgency they are showing in laying the pipeline to Gujarat, where they would pump most of it for group companies consumption is where lies max possibility of misappropriation. What the Amaricans are doing in Iraq is similar.
It is also important to know estimated available resources. Say M, if pumped out at r rate would exhaust in 10 years. And if this r rate is high and RIL would need larger customer base to supply to make max money at the soonest, ultimate looser would be local area, and of course the Nation. And if the resource sharing agreement between govt of India and RIL is more beneficial to RIL in first 10 years, that would explain why they are so desperate to do it in such short span of time. Estimated reserves are kept secrets and could also go greatly wrong, even with best of technology. I may be just speculating. All my writings could prove to be wrong.
In any case one thing, we all could do is buy shares of RIL companies and get some benefit out of it. I am sure Mukesh is up to some major gain from KG finds. Far more than meets the eye, as it goes according to their current game plan.
Hope it not that while we are too busy fighting on splitting state, while outsiders are busy in milking out maximum they could. Perhaps the MP from Kakinada should go and do "Suryanamskaram" on the beach to get some ideas. Until recetly most finds in India are by State owned companies. But now RIL a private company, sitting on a major gas finds, with plans to do it all by themselves, chances exist for planned sinister activities.

statesman · Posted: Thu Dec 21, 2006 5:31 pm Post subject:

Even ABON, (recently taken over by kirloskars), Essar projects can also take up this work besides several players in india.
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STATESMAN

statesman · Posted: Mon Dec 25, 2006 8:27 pm Post subject:

It is L&T which has completed 650 km Vizag - hyderabad product pipe line for HPCL, and GAIL(two lines) and i am sure L&Thas capabilities to complete the above job unless Mukesh has any enemity with L&T or L&T is averse to work with RIL.
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STATESMAN