IOC likely to set up fuel facility in Delhi Airport

India Oil Corporation (IOC) is likely to bag a deal for setting up an aircraft fuelling facility at India’s second busiest airport — Delhi International Airport (DIAL).

Reports quoted that IOC emerged as the lowest bidder in the tender floated by DIAL for building and operating the facility. Reliance Industries has also been short listed.

Bharat Petroleum Corporation (BPCL), the current fuel service provider to DIAL, stayed away from the bid as it opposed to the plan since it would end its contract for providing fuel beyond 2013.

IOC, once it wins the tender, and BPCL will simultaneously provide fuelling services at the airport as the latter will continue to service the current fuelling facility.

The fuel manufacturing facility is likely to be built by IOC and will be allowed to be used by other oil marketing companies. The companies would pay usage charges to IOC.

The Delhi airport currently consumes fuel worth Rs 5,000 crore in a year, the consumption, which is slated to go up with the expansion of the airport. The proposed fuel facility would have a capacity to store up to 60,000 kilolitre of fuel.