Blame IndianOiltanking for Haldia delay

Vol 19, PW 12 (25 Feb 16) News in Brief

IndianOiltanking's refusal to stick to the tender terms has forced its parent company IndianOil to delay the much awaited price bid opening in an estimated Rs300cr ($45m) tender to install a Coke Drum System and other equipment at its Haldia refinery in West Bengal.

IndianOil is clear it won't tolerate tender terms deviations but that didn't stop L&T and IOTL demanding deviations in their December 22 bids. L&T later withdrew its demands and IOTL withdrew most of its demands but refused to budge on advance payment terms during installation.

"IOC's tender terms provide for 10% advance payments against set milestones," says an industry source. "But IOTL wants 15%.

" Higher advance payments are crucial for small companies like IOTL which are suffering cash flow problems in this depressed market, say sources. IOTL is a joint venture between IndianOil and Germany's Oiltanking Gmbh.