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India's Oil Marketing Companies Told to Cancel INR 5,000 Crore Tender for Buying LPG Cylinders

Gasoil News - Published on Wed, 11 Sep 2019

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ET, citing people familiar with the matter, reported that the government has ordered Indian Oil, BPCL and HPCL to cancel INR 5,000 crore tender for purchase of cooking gas cylinders following detection of several discrepancies in the buying process. The three state-run oil companies had recently floated a tender to buy 3.77 crore liquefied petroleum gas cylinders to serve new customers, which have almost doubled in the past five years. Many conditions prescribed in the tender, including the pricing and preference for vendors from eastern India, triggered several complaints to the Prime Minister's Office, which then sought a wider examination of the matter.

The person said that state oil companies were asked to explain several anomalies and discrepancies in the tender process but they failed to offer a satisfactory response. This resulted in the government directing the oil companies to cancel the tender and float a fresh one that's free of discrepancies.

The person quoted above said oil companies have been directed to bring more transparency in the purchase process, and also institute a strong technical evaluation mechanism so that the process is, and appears to be, fair to all. Companies have also been asked to consider recent orders by Delhi High Court and the Competition Commission of India on cylinder purchase while preparing the new tender.

However, IndianOil, BPCL and HPCL didn't respond to ET's emailed queries till the time of going to press.

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Posted By : Rabi Wangkhem on Wed, 11 Sep 2019
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