EIL eyes billion-dollar West Asia projects amid Hormuz bypass plans

NEW DELHI: State-run Engineers India Limited (EIL) eyes billion-dollar engineering and consultancy projects in West Asia over the next 2-3 years, as countries such as the UAE and Saudi Arabia plan alternative infrastructure to bypass the Strait of Hormuz, a key maritime energy route disrupted by the US-Iran conflict.EIL chairman and managing director Atul Gupta said on Friday that the company was already in talks with the two countries, which are planning oil infrastructure, including pipelines, terminals and storage facilities, to bypass the strait. He added that EIL’s current order book of over Rs 17,000 crore is expected to expand as the situation in West Asia improves in the coming months.“From Feb 26 onwards (when the conflict broke out), there has been some slowdown in order inflow from certain territories like the Gulf region... They were busy with restoration activities at their own installations and protecting them. Definitely, the conflict has opened more opportunities for us,” Gupta told reporters after the company’s annual general meeting with shareholders.He added that EIL had opened a new office in Saudi Arabia earlier this year to expand its business in West Asia.The EIL chairman said the UAE had indicated at a conference in May that it was planning investments of nearly $55 billion in overall infrastructure development over the next few years to accelerate economic activity in the region.“As per our assessment, the infrastructure required to bypass Hormuz for better flow of crude... will involve investments of more than a billion dollars,” Gupta said.Expanding its portfolio, Gupta said EIL was also diversifying into other sectors and working on 11 projects related to the engineering and design of nuclear power plants. The engineering and consultancy company, which is under the administrative control of the petroleum ministry, has signed a memorandum of understanding with Nuclear Power Corporation of India Limited for developing the conceptual design and engineering of structures, systems and components for Bharat Small Modular Reactors.“We have developed our competency to cater to the nuclear energy segment. Govt has planned to develop 100 GW of nuclear energy capacity by 2047. There is huge potential for us,” Gupta said.He added that EIL had established a data centre for the Reserve Bank of India in Bhubaneswar and had now started working on another data centre for PowerTel, a telecom business of Power Grid Corporation, in Chennai.Get the latest Business News and Live updates. Download the TOI app.