IOC attracts ridicule over Haldia delay

Vol 19, PW 14 (24 Mar 16) News in Brief

IndianOil is attracting ridicule over the delay opening price bids in an estimated Rs300cr ($45m) tender to install a Coke Drum System and other equipment at its Haldia refinery in West Bengal.

Bids were submitted on December 22 by L&T and IndianOiltanking. But rumours are circulating that IOC wants to split the project into even smaller parts.

"Good luck to them!" says an industry source. "They've already split this project once.

Now they want to leave some crumbs for contractors." IOC is now expected to procure the Coke Drum and other critical equipment itself but award the mechanical installation and piping work to contractors. "Maybe IOC wants to save on purchase margins for this equipment," comments another source.

IndianOiltanking meanwhile remains adamant it wants 15% advance payments against set milestones against IOC's offer of a 10% advance. IOC is willing to only offer a time extension if it delays the delivery of equipment to the contractor.