Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has announced an online auction of RPC (Raw Petroleum Coke) from Guwahati refinery in Assam for intrastate consumers, scheduled on Thursday 10th Oct’19.
A total quantity of 8,500 MT will be offered in the auction, and the left over quantity will be auctioned for outside state consumers on 12th Oct’19.
The delivery period for within state consumers will be from 11th Oct’19 to 24th Nov’19; while the delivery period for outside state consumers will be from 14th Oct’19 to 27th Nov’19.
Interested bidders will have to submit an amount of INR 700/MT as pre-bid earnest money deposit to MSTC on behalf of IOC. Interest-free EMD amount of INR 700/MT rounded off to higher INR 10 should always commensurate with the bidding quantity. The bidding shall not exceed the quantity for which pre-bid EMD has been deposited by the buyer.
Notably, no quantity was offered from Guwahati in the last auction conducted for all other refineries on 11 Sep’19. This is due to the reason that a separate auction was conducted for Guwahati refinery on 7 Aug’19.
It is also worthwhile to note that IndianOil is declaring the reserve price of Guwahati distinctly higher as compared to its other three refineries located in the same state, from Nov’18 citing superior quality of the product. However, the local calciners have filed writ petition on this substantial difference and the Hon’ble Court has also directed vide order dated 30 May’19 to maintain price parity with other refineries of the state. It has also referred the reduction in reserve price by NRL Numaligarh by INR 7,000/MT on similar ground vide order dated 6 Feb’19. Similarly, IOC reduced the reserve price by approximately INR 7,000/MT from INR 27,020/MT to INR 24,150/MT and auctioned it on 7 Aug’19.
It would be interesting to watch the reserve price in this auction, as there has been price reduction from other refineries also, besides the Court intervention on Guwahati refinery.
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