G Raghurama Raju, a leader of IOC Oil Tankers Owners Association 
Andhra Pradesh

Visakhapatnam Oil tanker contractors allege lapse in IOCL transport tenders

Contractors oppose the reservation system in issuing of tenders claiming there is no such norms for PSUs 

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VISAKHAPATNAM: Contractors supplying oil tankers to the Indian Oil Corporation Limited (IOC) terminals in the city went on a strike, alleging irregularities in the new tender sanction process. 
With the strike, the fuel transport system has been hit badly. In total, 92 contractors are transporting IOC oil supplies daily through 340 tankers. Owing to this strike, the fuel supplies to RTC, Railways, Air transport sectors were hit for a while.


In the wake of allegations over irregularities in oil transporting tenders issue, the High Court in April 11 this year passed an order, directing the authorities ‘not to finalise the bids of tenders till further orders’. Meanwhile, the IOCL management issued conditional work orders to the new contractors, leading to the flash strike by the oil transporters on Thursday night. 


However, the company clarified that the IOCL has nothing to with the old transporters and they were following the regulations.  Helpless, the old transporters called off their agitation. 
As per the IOC Oil Tankers Owners Association and the IOCL management representatives, since its establishment of Production Terminal at Malkapuram, the IOCL is following the open tenders system for allocation of transport job works to private operators for a term of three years. 


As many as 92 transport tanker owners are maintaining the supply daily with 340 tankers of various capacities. These tankers used to transport nearly 2,000 kilo Litres of diesel and petrol to the IOCL’s regular customers like APSRTC, Railways and Airport daily.  


Two months ago as the contract period expired, the IOCL has called for new tenders. They decided to implement new policy in the contract tenders and appointment system. It declared SC/ST category reservation for the tenders as well as for the transportation job selection. 


As per the new system, the IOCL allocated the job to 21 contractors. But, the Oil Tankers Association representatives have alleged that among them, six contractors who have got the job through the SC/ST category reservation, are benamis and the tenders process was manipulated by some officials to safeguard vested interests. 


They also alleged a big scam behind the new policy. One oil tankers owners representative moved the HC. They tried to lodge complaints with CBI here and ACB officials, but the investigation agencies advised them to move the court. 


Against this backdrop, all the old transport operators opposed the new policy and questioned the IOCL management about the implementation of the reservation principle. 
But the management refused their pleas. Recently, the IOCL finalised the tenders and allocated job to the new contractors on Thursday. 


Knowing this, the old oil tankers owners went on a flash strike on Thursday and stopped the oil transportation. Due to this, transport of petroleum was hit up to the night. 
Though the situation was tense, the IOCL Oil Tanker Owners Association representatives  alleged that the new tender policy was full of shortcoming due to which the local transport operators were losing their livelihood. 


“There is no reservation for SC/ST categories in the contract based works of any public sector unit. Surprisingly, the IOCL authorities have taken a decision to implement this new norm, making hundreds of people jobless. In addition, the authorities may face a contempt of court case as the HC stayed the order till further orders,” said G Raghurama Raju, a leader of IOC Oil Tankers Owners Association. 

New tenders spark row 
Since its inception of Production Terminal at Malkapuram, IOCL has been following open tenders system for allocation of transport job works to private operators for three years 
With the contracts expiring, IOCL called for new tenders two months ago 
As per new norms, SC/ST category reservation for tenders is being followed 
Oil Tankers Association alleges that six contractors who got the job through reservation are benamis 
HC passed an order, directing the authorities not to finalise the bids of tenders till further orders

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