OMCs seek 15 crore litres of biodiesel at base price of Rs 88 per litre
Indian OMCs have jointly invited bids for 15 crore litres of B100 biodiesel for November 2026–January 2027 at a base price of ₹88/litre. The ₹1,320 crore tender covers UCO and other feedstocks, with winter-grade quality requirements and delivery across 85 locations.
New Delhi: Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have jointly invited bids for 15 crore litres of biodiesel to be supplied over three months from November 2026 to January 2027, at a fixed base price of Rs 88 per litre, PTI reported.
According to the joint tender issued on October 30, the three oil marketing companies (OMCs) are looking to buy 1,50,000 kilolitres of pure biodiesel, known as B100. Bids must be submitted by November 7. The fuel will be delivered to 85 OMC locations across the country.
The tender covers biodiesel made from used cooking oil (UCO) as well as other feedstocks. The base price excludes goods and services tax (GST), which is levied at 5 per cent on biodiesel, and transport charges, which will be paid separately based on distance.
According to the report, the purchase is part of a wider push by the OMCs to blend more domestically produced, low-carbon fuels with fossil fuels, in order to cut India’s dependence on imported crude oil. Having reached 20 per cent ethanol blending in petrol, India is now looking to speed up the use of biodiesel in diesel, the report said.
The report noted that using UCO as a feedstock turns waste into fuel and creates demand for the organised collection of discarded cooking oil from restaurants, hotels and food businesses. At the fixed rate, the full requirement would be worth Rs 1,320 crore before transport costs and GST. The report described the tender as a sizeable near-term opportunity for domestic biodiesel makers and feedstock suppliers, adding that it could help build manufacturing capacity and a more organised UCO collection system.
The tender sets winter-grade quality standards for the fuel. Of the total quantity, 98,286 kilolitres must have a Cold Filter Plugging Point (CFPP) of no more than 6 degrees Celsius, and the remaining 51,714 kilolitres no more than 12 degrees Celsius. The CFPP is the temperature at which fuel starts to clog filters, and the limits are meant to keep the fuel usable in different weather conditions during the winter supply period.
Only suppliers who qualified under the OMCs’ earlier empanelment process can take part. Each bidder must offer at least 100 kilolitres and hold type certification showing compliance with the latest IS 15607 standard. Suppliers of UCO-based biodiesel must also submit a certificate from CSIR-Indian Institute of Petroleum, Dehradun.
Volumes will be allocated separately for the two CFPP categories. If offers exceed the requirement in either category, the OMCs will reduce allocations proportionately before dividing supplies among the three companies and their locations.
Suppliers must deliver at least 90 per cent of their prorated monthly order or indent quantity, whichever is lower, or 95 per cent of the overall prorated requirement if monthly targets are missed. Any shortfall will attract a 3 per cent cut in the base price on the quantity not supplied. Suppliers must also pay a security deposit of 3 per cent of the base value of their allocated quantity and bear the cost of transport and transit insurance. Payments will be made within 21 days of delivery and submission of documents.
The OMCs may move up to 20 per cent of a supplier’s allocation to a different delivery location at the applicable delivered cost, and may accept up to 10 per cent more than the original allocation with mutual consent. According to the report, the tender does not state the final blending ratio or how much each company will buy; actual allocations will depend on qualified bids and later orders, PTI stated.
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Source : ChiniMandi
