EPC Vs EPCM MODE OF EXECUTION OF PROJECT IN INDIAN CHEMICAL INDUSTRY

摘要

Indian Chemical Industry includes the refinery, petrochemicals, fertilizers, inorganic and organic chemical sectors in addition to non-ferrous minerals. While the 60's witnessed in India project execution on a Lumpsum Turnkey basis (LSTK) using foreign credits the 70's and 80's witnessed major project execution on an Engineering Consultancy basis (more known as EPCM), employing a local, or overseas engineering contractor or as a joint venture. The mid-90's to the present have witnessed a reversal of scenario where some refinery, petrochemicals and fertilizers projects, that were executed on EPCM basis in the past in India are switching to an EPC or LSTK mode of execution, particularly in the public sector. The following paragraphs analyse the two EPC/ LSTK and EPCM modes of project execution and discuss the pros and cons of each approach.