Punj Lloyd joint MD and COO V.K. Kaushik in Calcutta on Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, Dec. 6: Construction major Punj Lloyd is in talks with Reliance Industries Ltd (RIL) for setting up a pipeline to evacuate gas from the latter’s giant discovery in Krishna-Godavari (KG) basin.

RIL wants to build a cross-country pipeline connecting Kakinada in Andhra Pradesh to Uran in Maharastra to transport the gas.

The 956-kilometre pipeline will conduit gas from the east-coast to the western market. And Punj Lloyd, with its forte in pipeline construction, has evinced interest in building some parts of the network.

The total cost of construction of the project has been estimated at Rs 2,200 crore and Punj Lloyd is hoping to bag the contract for a sizeable part of it. “We are in parleys with Reliance for the project,” said V. K. Kaushik, joint managing director and chief operating officer (COO) of Punj Lloyd.

Reliance Industries is expected to award the contract by June next year so that the work can start just after the monsoon.

Punj Lloyd’s core competence lies in pipeline construction, which contributes 43 per cent of the company’s turnover. It is the one of the few companies to have laid 48-inch diameter pipeline. The company has executed projects in the Caspian region, Indonesia, Turkey and worked with companies like BP, PetroKazhakstan among others.

Punj Lloyd, which is also coming out with an initial public offer to raise close to Rs 600 crore, is betting big on the oil and gas sector.

According to an industry estimate, domestic and multinational oil companies are expected to pump in close to $40 billion in the country over the next 10 years.

“We believe there is significant opportunity in the oil and gas sector ? in building pipeline as well as storage terminals,” Kaushik added.

The company, however, hopes its other businesses ? process facilities, infrastructure and power ? to contribute handsomely to its topline growth.

The company plans to tap the opportunities in hydel power, airport development and railway projects, going forward. Currently it has orders at hand worth Rs 3,700 crore.