Oil minister Dharmendra Pradhan (File photo)
NEW DELHI: Oil minister Dharmendra Pradhan on Thursday asked state-run companies under his ministry to double sourcing of domestic steel pipes to about four lakh tonne, worth an estimated Rs 4,000 crore, for their pipeline projects by the end of current financial year.
According to Pradhan, gas utility GAIL is processing line pipe tenders worth over Rs 1,000 crore requiring one lakh tonne of steel by September for manufacturing 800 km of pipes by domestic bidders.
This quantity is expected to be doubled by the end of the current financial year to boost ‘Make in India’ initiative and boost the move towards self-reliance.
Indradhanush Gas Grid Ltd, which is expanding city gas networks in the north-east, is processing tenders of more than Rs 950 crore for 73,000 tonne steel by July for manufacturing 550 Km pipes by domestic bidders. This quantity is expected to be doubled by March 2021.
Indian Oil is implementing a 1,450-km-long natural gas pipeline project in the southern region at an estimated cost of Rs 6,025 crore. This project has the potential to support domestic manufacturing of approximately 1.6 lakh tonne of steel pipes worth Rs 2,060 crore.