Logistics

Oil companies to float new tender for bulk LPG transportation

T. E. Raja Simhan Chennai | Updated on July 06, 2011 Published on July 06, 2011

Deadlock ends over tender conditions: A file photo of afleet of tanker lorries stationed outside the LPG bottling plantof Indian Oil Corporation at Inamkulathur in Tiruchi district.



The three major oil companies – Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum – will issue a new tender this week for transporting bulk LPG across the country, according to transporters.

This follows an end to the deadlock between oil companies and transporters over tender conditions. The transporters protested against the reduction in weigh tolerance level to 40 kg from the existing 100 kg between the loading and unloading points.

New proposal

However, at a meeting in Mumbai recently, the transporters agreed to the proposal of oil companies to levy penalty only for the excess weight over and above the prescribed 40 kg. Under the present tender condition, if the weigh difference is say 50 kg, the penalty will be for the entire 50 kg whereas the new proposal is to penalise only for the excess 10 kg (over and above the allowed 40 kg), according to Mr N.R. Karthik, Secretary, Southern Region Bulk LPG Transport Owners Association, Namakkal, the hub for truck industry in the south.

Nearly 12,000 vehicles are required to transport bulk LPG from various loading centres to bottling plants. The tender is collectively worth nearly Rs 6,500 crore.

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Published on July 06, 2011
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