State fuel retailers are seeking to purchase 20 million litres of biodiesel from local manufacturers to blend with diesel. Bharat Petroleum (BPCL) has invited tenders on behalf of all three state fuel retailers to procure 20,460 kilo litres of biodiesel, of which 43% would go to Indian Oil Corporation (IOC) and the balance will be almost equally split between Hindustan Petroleum (HPCL) and BPCL.
The fuel retailers will mostly require the supply of biodiesel in Andhra Pradesh, and also in Gujarat and Tamil Nadu between July and September. Vendors will have to submit their bids online by July 25, according to the tender document. The contract for the supply of biodiesel shall be awarded on location-wise lowest net delivered cost basis. Vendors have the option to choose a location and offer a quantity that can’t be less than 500 kilo litres nor more than the requirement in that location.
Oil companies started procuring biodiesel, produced from vegetable oil or animal fat, last year for blending with diesel. The government has not set any target for blending biodiesel although it has made mandatory for oil companies to use 5% ethanol, produced mainly from sugar and corn, in the petrol they sell. The companies are yet to meet the 5% target. The National Policy on Biofuels had proposed a 20% blending ratio for both biodiesel and ethanol by 2017 but the lack of supply and pricing issues had held back progress on this. Craig Anderson JerseyShare This