Dilip Buildcon Share Price Up Over 5%; Bags ₹1,800 Crore LoI for LPG Pipeline From Paradip to Raipur

Dilip Buildcon Limited (DBL) has received a Letter of Intent (LOI) from the Petroleum and Natural Gas Regulatory Board (PNGRB) for an LPG pipeline between Paradip, Odisha and Raipur, Chhattisgarh. The company made the disclosure on September 9, 2026.  

The LOI relates to the grant of authorisation for laying, building, operating or expanding the petroleum and petroleum products pipeline.  

PNGRB is the authority for the project, which includes an exclusive licence for developing the pipeline infrastructure for LPG transportation.  

₹1,800 Crore Project 

The project has an estimated value of ₹1,800 crore, excluding GST. The Engineering, Procurement and Construction (EPC) work is proposed to be awarded to DBL and is to be completed within 36 months.  

DBL will undertake the design, financing, development and construction of the pipeline, as well as its operation and maintenance. These activities will be subject to the approvals, authorisations and regulatory requirements of PNGRB.  

The project will be implemented through a Special Purpose Vehicle (SPV), in which DBL will hold 100% equity. The company’s disclosure states that the proposed EPC work represents a business opportunity of approximately ₹1,800 crore.  

25-Year Operating Period 

The construction period for the project is three years, followed by an operation period of 25 years. DBL will be authorised to levy and collect the applicable tariff for transporting LPG up to the designated delivery point during the operating period.  

The pipeline is proposed to operate as a Common Carrier under the applicable PNGRB framework. Eligible Oil Marketing Companies (OMCs) and users will be able to access its capacity, with revenue generated through the applicable pipeline transportation tariff.  

LPG Transportation 

The pipeline is intended to transport LPG to bottling plants of various OMCs and replace existing road-based transportation through tankers. DBL will develop and operate the infrastructure and provide transportation services.  

DBL will not be involved in LPG procurement, trading, distribution or sale, and will not bear the related commercial risks associated with procurement and marketing.  

Read More: Sigma Advanced Systems Share Price Gains Over 3%; Launches Aerospace Manufacturing in Sri City! 

Dilip Buildcon Share Price Performance 

As of September 10, 2026, 12:18 pm, Dilip Buildcon share price was trading at ₹413.35, a 5.18% increase from the previous closing price. 

Conclusion 

The Paradip-Raipur LPG pipeline has a three-year execution period and a 25-year operation period, with the project valued at ₹1,800 crore excluding GST. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.