Annual Report 2006-2007 - Gammon India

j. Pipelines
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Annual Report 2006-2007
Your Company has been awarded the prestigious Dahej Uran Gas Pipeline work for Gas Authority of
India Limited (“GAIL”) valued at Rs. 196 crores. Other Pipeline projects like Sohar Water Transmission line
project, the Numaligarh Pipeline Project and the Koyali-Ratlam Project continue to progress satisfactorily.
k. Multistoried Buildings
There has been an overall increase in the housing and commercial building works. Your Company has
secured Knowledge Park building works in Bangalore valued at Rs. 101 crores. Progress on works for
Godrej Properties, Neelkanth Realty continues to be satisfactory.
l. Overseas Projects/Ventures
Your Company has already undertaken several projects in the Middle-East and other countries and is
seeking out new business opportunities overseas. Your Company is executing an Independent Water and
Power Project at Sohar – Water Transmission System Project for Ministry of Housing, Electricity and Water,
Sultanate of Oman.
In continuing with its overseas ventures, your Company has entered into Joint Venture with a U.S. Company
for hydrocarbon exploration in India and overseas.
Your Company has also incorporated “Gammon International LLC., Oman in joint venture with Oman
Holdings International Company. S.A.O.G. (OHI) (Gammon – 69% and OHI – 31%) for undertaking and
executing constructions contracts in the Sultanate of Oman. Further your Company is also in the process of
setting up a Company in Nigeria and another Wholly-owned subsidiary Company “Gammon International
FZE” in the Hamriyah Free Zone at Sharjah.
4. Presence in Public Private Partnership Projects :
The Government is actively pursuing Public Private Partnerships (PPPs) to bridge the infrastructure deficit in the
country. Several initiatives have been taken during the last three years to promote PPPs in sectors like Ports,
highways, power, roads, bridges etc. Having been in the field of Infrastructure project contracting for a number
of years, it was natural that Gammon group moved into the business of Infrastructure Projects Development.
The resources constraint with the Government and an immediate need of developing Infrastructure in the
Country were the primary drivers in Gammon group reaching this logical conclusion. Gammon Infrastructure
Projects Limited (GIPL), a subsidiary Company of Gammon India Limited, has been leading Gammon Group’s
forays into development of infrastructure projects on Public Private Partnership (PPP) format. GIPL is among
the first companies in India to be modeled as an infrastructure development company and currently develops
roads, bridges, ports and hydro power and have also identified the following areas for project development
and infrastructure investment; urban infrastructure; airports; special economic zones; water and waste water
management; railways; power transmission lines; and agricultural infrastructure. GIPL also offers services in
other areas of project development, such as project advisory services and sector specific O&M activities.
The present BOT project basket of GIPL consists of the following Thirteen (13) projects wherein GIPL has been
awarded or is the preferred bidder:
a. Two multipurpose berths at Visakhapatnam Port
A joint venture of Gammon and a reputed International Port Operator, Portia Management Services, UK has
been awarded the concession by Visakhapatnam Port Trust (VPT) for developing, constructing, operating
and managing two multi purpose berths in the Northern arm of the inner harbour at Visakhapatnam Port
on a Build Operate and Transfer (BOT) basis. A special purpose vehicle company – Vizag Seaport Private
Limited (VSPL) has been formed to implement the project. The total project cost is about Rs. 325 Crores.
b. Rajahmundry – Dharmavaram Annuity Road Project
A Special Purpose Vehicle ‘Rajahmundry Expressway Limited’ has been set up for development and
maintenance of this project. The project includes widening of a 53 kms of two-lane road into four lanes and
strengthening of the same. The project cost is about Rs. 256 Crores. The project has concession period
of 17.5 years which includes 2.5 years of construction period. The Project has achieved its Commercial
Operations Date notification well ahead of schedule and is operational since the last 3 years.