Financial Daily
from THE HINDU group of publications

Wednesday, July 11, 2001



News | Next | Prev

Oil PSUs to buy LPG cylinders via open tenders

Our Bureau

NEW DELHI, July 10

THE Petroleum Ministry has initiated a move to procure LPG cylinders through open tender system for the oil marketing public sector undertakings. According to an official release, this measure would bring about a saving of Rs 480 crore for the oil indust ry for an estimated procurement of two crore cylinders by the industry in the current year.

Earlier, cylinders were procured from manufacturers authorised by the Ministry on the basis of rate certified by PricewaterhouseCoopers.

Accordingly, tenders were floated by the oil companies for procurement of LPG cylinders. The existing cylinder manufacturers, numbering about 70, formed a cartel and quoted a common delivered price of Rs 890 per cylinder whereas the public sector Balmer Lawrie quoted a price of Rs 770 per cylinder.

The oil companies then negotiated with the private companies and brought down the cartel price to Rs 650 per cylinder, translating to a saving of Rs 480 crore for the current year alone.

Comment on this article to

Send this article to Friends by E-Mail

Next: Chennai Petro considering SBI's Rs 700-cr loan offer
Prev: `No official order on AI bid opening'

Agri-Business | Commodities | Corporate | Features | Industry | Letters | Macro Economy | Markets | News | Opinion | Variety | Info-Tech | Catalyst | Investment World | Money & Banking | Logistics |

Page One | Index | Home

Copyrights © 2001 The Hindu Business Line.

Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line.