So far, NOC, the state-owned import monopolist, has allowed LPG bottlers to import the fuel themselves by issuing purchase delivery orders.[break]
Under the new mechanism, however, NOC now says it would import LPG itself by hiring transporters and distribute it to the bottlers. Going by this plan, it had issued a public notice seeking LoI from interested firms to import LPG on its behalf.
“Fifteen firms submitted their LoIs by the time the deadline of tender notice ended on Wednesday. We will evaluate each proposal and seek price quotations from qualifying firms soon,” Suresh Kumar Agrawal, acting managing director of NOC, said.
Firms that have submitted LoI include Khatri Roadline, MK Pariwal, India Carriers, Seema Roadline, M R Shah Logistics, Agrawal Roadline, Shakti Roadways, Jangit Tanker, Cargo Service, Chandan Roadline, Manakamana Wheels, Jaswant and Associate, Krishnabal Carriers, IP Roadline and Akshaya Roadline.
Those submitting LoIs include local as well as Indian transporters. Indian firms that never operated in Nepal have also filed LOI, said officials.
In its fresh bid, which, NOC officials said, would introduce competition in LPG transportation business, the corporation has announced it would hire transporters for importing 20,000 tons of gas from three refineries of Indian Oil Corporation (IOC).
The transporters will be required to transport 13,000 tons of LPG from Barauni, 5 tons from Haldiya and 2 tons from Mathura refinery. The tender notice had set 10-year experience in LPG transportation as basic eligibility criteria for the firms to take part in the bid.
“We will hire firms that quote lowest transportation service charges,” said Agrawal, adding that NOC plans to appoint at least four transporters at each refinery. “Multiple transporters will be appointed for each source so that chances of unfair play by the firms could be avoided.”
Presently, NOC that subsidizes fuel transportation cost for companies is paying bottlers Rs 100 per cylinder (14.2 kg). With the introduction of competition among transporters, NOC top brass believes it will be able to cut that cost.
However, LPG dealers have claimed it will only add cost to the corporation.
LPG bottlers, on the other hand, have supported the move, saying that it will free them from the burden of import. However, they have argued that NOC must still continue to subsidize their cost of local transportation, which include delivery of refilled cylinders to the dealers.
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