A Report on Iron/Steel Pipes Purchases by IOCL (in FY18 and FY19)

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Indian Oil Corporation Limited (IOCL) commonly known as IndianOil is an Indian state-owned oil and gas company. It is the largest commercial oil company in the country, with a net profit of INR 19,106 crore (USD 2,848 million) for the financial year 2016–17. It is India’s largest downstream oil company, with a turnover of INR 506,428 crore.

With extensive refining, distribution & marketing infrastructure and advanced R&D facilities, lndianOil plays a significant role in fuelling the socio-economic development of the country. With a mandate to ensure India’s energy security and self-sufficiency in refining & marketing of petroleum products, lndianOil has in the past six decades provided energy access to millions of people across the length and breadth of the country through its ever-expanding network.

A Report on Iron/Steel Pipes Purchases by IOCL (in FY18 and FY19)

In May 2018, IOC becomes India’s most profitable state-owned company for the second consecutive year, with a record profit of INR 21,346 crore in 2017-18.

IndianOil’s business interests overlap the entire hydrocarbon value-chain, including refining, pipeline transportation, marketing of petroleum products, exploration and production of crude oil, natural gas and petrochemicals.

lndianOil operates a network of 14,189 km of cross-country pipelines for transporting crude oil, refined petroleum products, and natural gas, with a cumulative throughput capacity of 94.79 MMTPA of oil and 9.5 MMSCMD of gas. During the year, 543 km of new pipeline sections were commissioned. As per Indian Oil Corporation Limited in FY18 and FY 19 (Till December only), information was sought through RTI was sent to two different divisions of IOCL  i.e. Refineries division and Pipelines divisions.

A Report on Iron/Steel Pipes Purchases by IOCL (in FY18 and FY19)

Reply by Refineries division, IOCL

In reply to the query, AK Bhagawati GM I/c (HR)and Public Information Officer of Refineries division stated that During FY 18: 5129 items of pipe (Iron/Steel) value = INR 2,791 crore and in FY 19 2926 items of pipe (Iron/Steel) value = INR 641.6 crore.

He further added that compiling details of all pipe purchase tender would disproportionately divert the resources of the corporation and hence the details are not being furnished as per Sec 7(9) of RTI Act, 2005.

In reply to the second query (to whom these tenders were awarded and at what price), it was said that this information is voluminous and compilation of such information would disproportionately divert the resources of the corporation. Hence this information is not furnished.

Reply by Pipelines divisions, IOCL

Prakash Abraham General Manager (HR) and Central Public Information Officer Pipelines Head office Noida gave the following details which are arranged in the table below.

Table showing Total number and details of all Pipe (Iron/Steel) purchase tender floated by IOCL.

Serial Tender Ref No. Tender Title Contract Date Awarded Bidder Name TENDER ID Pipe Qty in Metric Ton Awarded value (in INR)
1 PLM/ETBPNMTPL/17/5 SUPPLY OF API 5L GRADE PIPES 15-Dec-17 JINDAL SAW LIMITED 2017_PLHO_56013_2 16,400 1,61,68,34,242
2 PLM/ETBPNMTPL/17/5 SUPPLY OF API 5L GRADE PIPES 15-Dec-17 JINDAL SAW LIMITED 2017_PLHO_56013_1 16,400 1,61,68,34,242
3 PLM/RC/17/08 SUPPLY OF DUPLEX PIPES 16-Mar-18 OM INDIA STAINLESS TUBES LIMITED N/A 18,11,46,869.8
4 PLM/PHPL/17/22 SUPPLY OF STATION PIPES 22-May-18 KWALITY TUBES N/A 2,39,73,228
5 PLM/KASPL/17/17 SUPPLY OF API 5L GRADE PIPES 20-Jul-18 RATNAMANI METALS AND TUBES LIMITED 2017_PLHO_67396_1 17,800 1,85,18,69,664
6 PLM/KASPL/17/17 SUPPLY OF API 5L GRADE PIPES 20-Jul-18 RATNAMANI METALS AND TUBES LIMITED 2017_PLHO_67396_2 17,800 1,85,18,69,664
7 PLM/DKPL/17/1 SUPPLY OF API 5L GRADE PIPES 26-Jul-18 WELSPUN CORP LIMITED 8,900 1,03,58,92,393
8 PLM/KDTPL/18/3 SUPPLY OF API 5L GRADE PIPES 03-Dec-18 RATNAMANI METALS AND TUBES LIMITED 2018_PLHO_77617_1 3,000 32,08,85,379.8
9 PLM/TSP_MOHT/18/14 SUPPLY OF STATION PIPES 03-Dec-18 STAR METAL AND TUBES 2018_PLHO_79460_1 N/A 32,14,380

 

American Petroleum Institute (API)

Note: All the details and information in the above table were sought under RTI except pipe quantities. Quantities of the pipe are procured from highly placed sources in IOCL who gave quantity details on the condition of anonymity.

From the above table, Steel360 learned that Ratnamani Metals & Tubes Limited was awarded the biggest tender amounting INR 185 crore (approx) and Jindal Saw Limited was awarded the second biggest tender amounting INR 161 crore during the period of FY18 and FY 19 (Till December). However, both the tenders were for supplying API 5L GRADE PIPES.