Lok Sabha Question No. 1378 (UNSTARRED), answered on 2020-09-19
Subject: Banking Industry
Ministry: PETROLEUM AND NATURAL GAS
Asked by: S. Venkatesan

## LOK SABHA UNSTARRED QUESTION NO. 1378 TO BE ANSWERED ON 19 TH  SEPTEMBER, 2020

## Transportation of Petroleum Products

†1378. DR. VIRENDRA KUMAR:

पैोिलयम और ाकृितक गैस मंी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether  the  Petroleum  Company  contracts  the  lorry  to  transport petroleum  products  from  depot  to  the  retail  outlet  of  the  petrol pump owner and if so, the provisions of the company's rules;
- (b) whether the transport tender of the petroleum company  is approved for a period of five years;
- (c) if  so,  the  provision  of  the  company  regarding  contracts  of  the tankers, lorries for the transportation of petroleum products to the pumps  with  regard  to  those  where  the  pumps  are  functional following the completion of tender process and those who couldn't participate in the tender process; and
- (d) the details of proposals for approval, dealer's applications received by  the  zonal  office  for  the  transportation  of  diesel,  petroleum products  to  the  retail  outlets  of  the  pump  owners  by  their  own tankers,  lorries  from  the  depot,  terminal  after  2017  falling  under the North Central Regional office of HPCL?

## A N S W E R

## पैोिलयम और ाकृितक गैस मंी

## ( ी धम धान )

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)  Yes Sir. Oil  Marketing  Companies  (OMCs)  have  informed  that the contract for transportation of petroleum products from depots/terminals to retail outlets is finalized through tenders by OMCs. The petrol pump owners offering tank trucks for transportation of their own demand from depots/terminals to their own retail outlet are inducted through Expression  of  Interest  (EOI),  whereas,  for  balance  retail  outlets,  tank trucks  to  transport  petroleum  products  are  inducted  through  Public Tender from transporters.

- (b) Yes  Sir.  HPCL  and  BPCL  have  informed  that  as  per  current  policy transport contracts are finalized for a period of 5 years. In case of IOCL contract  is  done  for  3  years  which  is  extendable  upto  5  years  at discretion of the company.
- (c)  Oil Marketing Companies (OMCs) have informed that Transport contracts are  finalized  with  transporters  for  each  supply  location  separately. Transport contractors are required to  transport  Petrol  and  Diesel  to  all retail  outlets  fed  by  that  supply  location  during  contract  period.  This  is also  applicable  to  new  retail  outlets  which  are  commissioned  after finalization  of  transport  contract.  Transport  contract  is  made  only  with those transporters who have participated in the tendering process, who have  quoted  lowest  rates  or  willing  to  match  lowest  rates  as  per requirement of the company. Before publication of the Transport Tender, Existing Dealers are permitted to offer 'EOI' to induct their Tank lorries for carrying their own loads on terms and conditions given in the Tender. Dealerships commissioned after the tender is finalized are permitted to offer  their  Tank  lorries  on  the  same  terms  and  conditions  for  carrying their own loads.
- (d) HPCL has informed that after 2017 for North Central Zone dealer's offer were  received  for  851  Tank  Trucks  (TTs)  through  EOI,  out  of  these, Letter  of  Acceptances  (LOAs)  have  been  issued  to  technically  qualified 821  TTs.   806  TTs  of  these  successful  TTs  have  been  inducted  by dealers. In addition 80 TTs were inducted for the dealerships commissioned/revived/re-instated after the due date of EOI for meeting their own supplies.

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