RIL emerges sole bidder

Airports authority in a bind over fuel station tender.

The Airports Authority of India is in a fix as Reliance Industries has emerged the sole bidder for setting up 25 aviation fuel stations in the country. This is after public sector oil marketing companies decided to boycott the tendering process.

Civil Aviation Minister Praful Patel said he would take up the issue with the petroleum ministry and would seek legal advice, if needed. "If domestic airlines can compete with private airlines, I see no reason why public sector oil companies cannot compete with private companies," Patel told Business Standard .

Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have decided to boycott the AAI's tendering process.

Asked whether the government would award the project to Reliance, Patel said the project would go to the successful bidder selected through competitive bidding.

Declining to comment on the details of the issues raised by the PSU oil companies, Patel said, "This is the era of competition and companies have to gear up to face that challenge."

When contacted, an IOC executive said the public sector oil companies were not happy with the conditions laid down by AAI for setting up fuel stations and had reached a consensus not to participate in the tendering process.

"PSUs have fuel stations in all locations stipulated by the AAI except in Kandla. We have also asked the authorities to reconsider the conditions laid down for the project," the executive added.

Patel said the ministry would take an appropriate decision on the proposal of Air India (AI) to partially hedge its exposure on aviation turbine fuel that it bought from the international market.