Public sector oil retailer Indian Oil Corporation has lost to Reliance Industries Ltd the contract for supplying diesel to the Indian Railways.
Saurabh Chandra, Secretary, Ministry for Petroleum and Natural Gas, gave this information, on the sidelines of a conference without giving further details. The win sees RIL gain a foothold in supplying diesel to the Indian Railways after a gap of almost seven years. Annual business from the Railways is around 2.7 billion litres. The Railways buys diesel through an annual rate contract with oil marketing firms. It invites bids from firms, with the discount level used as a key parameter. Dharmendra Pradhan, Minister for Petroleum and Natural Gas, said that 9.34 crore of the 15.24 crore LPG consumers have joined the Direct Benefit Transfer for LPG scheme.