IndianOil may bag deal to set up jet fuel facility in Delhi
New Delhi   23-Mar-2009
State-owned oil marketing company IndianOil may bag the contract for providing aircraft fuelling facility at Delhi airport, the country's second busiest airport. IndianOil is reported to have made the lowest bid in a tender floated by airport operator Delhi International Airport (DIAL) for building and operating the facility. According to a person familiar with the development. Reliance and IndianOilwere shortlisted in the first few rounds. The existing fuel service provider Bharat Petroleum Corporation (BPCL) chose to stay away from the bidding process. But, the company will continue to service the current fuelling facility. As a result, IndianOil, once it wins the tender, and BPCL will simultaneously provide fuelling services at the airport. Other oil marketing companies can use the fuelling facility, which is likely to be built by IndianOil. They will pay usage charges to IndianOil. At present, aircraft at Delhi airport consume fuel worth Rs 5,000 crore in a year. Once the airport is expanded, the demand will increase. Along with a new terminal building and expanded physical infrastructure, Delhi airport's new fuelling facility would be able to store up to 60,000 kilolitre fuel Though there is dearly need for an upgraded fuelling facility, the decision has proved to be controversial. BPCL has opposed the plan because it would mean an end to its contract for providing fuel beyond 2013. Moreover, it would mean increased competition for business from airlines using Delhi airport. BPCL's objections got support from the petroleum ministry that wants the civil aviation ministry to intervene and cancel the tender.