Tenders favored over negotiated price method

With a view to bring about transparency in the purchase of ethanol by public sector oil marketing companies, India’s Petroleum Ministry has directed oil PSUs to float tenders instead of the present negotiated price method. According to the petroleum ministry, an open bidding system will facilitate participation by all prospective ethanol suppliers, leading to a better price discovery. Indian Oil Corp., Bharat Petroleum Corp. Ltd., Hindustan Petroleum Corp. Ltd. and IBP Co. have tendered for 68,000 kiloliters of ethanol to be delivered over three years. (September 1, 2006)