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State-run oil marketing companies Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have floated a joint tender to procure 15 crore litres of biodiesel at a base price of Rs 88 per litre, translating into an indicative procurement value of Rs 1,320 crore, excluding transportation charges and GST.
According to the Expression of Interest (EOI) issued on October 30, the procurement covers the November 2026January 2027 period, with biodiesel supplies to be delivered across 85 locations in the country. The tender document stated, "Base price of Biodiesel for the procurement period November 2026 January 2027 shall be Rs. 88.00 per Ltr (excl GST & Transportation)." The procurement will cover B100 biodiesel produced from used cooking oil (UCO), non-UCO feedstocks or a combination of both, with supplies required to meet the Bureau of Indian Standards specification IS 15607:2022. Of the total 1,50,000 kilolitres (KL) required, 98,286 KL must meet a maximum cold filter plugging point (CFPP) of 6 degrees Celsius, while the remaining 51,714 KL must meet a maximum CFPP of 12 degrees Celsius, depending on the delivery location. The tender has invited bids from registered suppliers already qualified under the oil marketing companies' empanelment process. Suppliers must offer a minimum quantity of 100 KL to qualify for allocation. For biodiesel manufactured from used cooking oil, bidders must submit a type certificate issued by the CSIR-Indian Institute of Petroleum, Dehradun, confirming compliance with prescribed quality standards. The document further stated that biodiesel procured by the oil marketing companies would be used for blending with conventional diesel under the Ministry of Petroleum and Natural Gas's biodiesel-blended diesel programme. Biodiesel is a renewable fuel manufactured from feedstocks such as vegetable oils, animal fats and used cooking oil. It can be blended with conventional diesel, helping substitute a portion of fossil fuel consumption with renewable alternatives. The use of discarded cooking oil for biodiesel production also provides an avenue to convert waste into fuel, while potentially encouraging organised collection and processing of used cooking oil from restaurants, hotels and other food establishments. The tender specifies a 5 per cent GST on biodiesel, while transportation charges will be calculated separately based on the distance between the supplier's plant and the oil marketing company's delivery location. Under the supply conditions, vendors must fulfil at least 90 per cent of their monthly purchase order or indent quantity, or 95 per cent of the quantity over the overall procurement period. Failure to meet these requirements may attract a price reduction of 3 per cent on the applicable basic value of the shortfall. The companies have also stipulated a security deposit equivalent to 3 per cent of the basic cost of the allocated quantity, while payments to suppliers will be made within 21 days of receipt of material and submission of the required documents. The last date for submitting bids is November 7, 2026. (ANI)
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