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Iocl Tender Bio-Diesel
Iocl Tender Bio-Diesel
Invite
Expression of Interest
(EOI)
From
For
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
2) The purpose of inviting this EOI is to encourage the APPLICANT to set up BIO- DIESEL
plants from Used Cooking Oil (UCO) processing plants and further utilising the existing
potential of UCO based Bio-diesel in India.
4) Due to technical issues related to problem of keeping the e-tender open for longer period
and mid-term evaluation of applications submitted, eleven separate EOIs shall be uploaded,
starting from 10th August 2019 to 19th August 2020. The first EOI, which started from10th
August 2019 and closed on 9th October 2019 and all other subsequent EOIs shall have a time
period of approximately 1 (one) month. The 10th EOI starts from 27th August 2020 and close
on 28th September 2020.
5) The EOI document, name of the EOI and terms - conditions & further selection criteria shall
remain same for all the subsequent released EOIs.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
However, these dates may be further extended/ revised as per the decision
of the OMCs.
7) Queries: Applicants to note that any queries related with EOI submitted to coordinating
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
OMC of particular GA (Please refer Annexure III GA / Additional Cities under EOI) and
are to be submitted online only at sites mentioned below against the coordinating OMCs.
Queries/clarifications received in any other form are liable to be unanswered. A written
reply from the concerned OMC will be given on the same site and that answer /
clarification shall be visible to all the Applicants except confidential information.
8) For details of complete EOI, interested parties may refer to Central Public Procurement
Portal of Government of India (https://eprocure.gov.in/cppp/); IndianOil website
(https://iocletenders.nic.in/nicgep/app); BPCL website (www.bharatpetroleum.com/) and
HPCL website (www.hindustanpetroleum.com) under Tenders and contracts.
9) All revisions, clarifications, corrigenda, addenda, time extensions etc., to the EOI will be
hosted on above websites. APPLICANTs should regularly visit this website to keep
themselves updated.
The EOI complete in all respect for Indian Oil Corporation Ltd., Bharat Petroleum
Corporation Ltd. and Hindustan Petroleum Corporation Ltd. should be submitted
only through online portal of respective OMC, detailed as under. No physical EOI
shall be accepted.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
Due to updating technologies and plant configurations during the EOI period,
APPLICANT’s may submit revised EOI applications for any particular Plant. On
submission of revised application (physically during evaluation stage), the original
application for that particular Plant shall stand cancelled. The applicant shall have
to provide an undertaking on their letter-head to the effect. Once Letter of Intent
(LoI) is placed upon an applicant for a particular Plant, no further EOI applications
can be submitted for that particular Plant.
11) The selection/empanelment of the APPLICANT shall be made by the coordinating OMC,
based on merit system as detailed in the EOI document and APPLICANT shall be
informed accordingly.
12) INTRODUCTION:
a) Biodiesel has many environmentally beneficial properties. The main benefit of biodiesel is
that it can be described as ‘carbon neutral’. This means that the fuel produces no net
output of carbon in the form of carbon dioxide (CO2). This effect occurs because when
the oil crop grows it absorbs the same amount of CO2 as is released when the fuel is
combusted.
c) The overall blending percentage of biodiesel in diesel has been less than 0.1 percent in
the country against demand of 4600 TKL, due to constraints pertaining to feedstock
availability. Moreover, whatever biodiesel is coming for the blending programme is
manufactured from imported sources.
d) Ministry of Petroleum & Natural Gas has announced National Biofuels Policy - 2018
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
based upon which Government of India has set a target of 5% blending of biodiesel in
diesel by 2030
f) Used Cooking Oil (UCO) can be converted to Fatty Acid Methyl Esters (FAME), which
has fuel properties similar to crude based diesel and hence called Bio diesel. Thus UCO
is a major source for the production of biodiesel.
g) To create a robust sustainable supply chain for Bio-diesel from Used Cooking Oil (UCO)
and entrepreneurship opportunities, Bio-diesel from Used Cooking Oil (UCO) plants shall
mainly be set up by independent entrepreneurs. OMCs shall off-take BIO- DIESEL from
Used Cooking Oil (UCO) produced from such Plants.
13) The general terms for the APPLICANT shall be on the following lines:–
a) APPLICANT shall be responsible for UCO procurement, design & engineering and
execution of the project, including sourcing & storage of raw material, operation and
maintenance of the plant, maintaining final product output quantity and quality, managing
the by-products and wastes from the plant as per existing central / state norms and
providing performance guarantee for the project at their own cost.
b) Setting-up and commissioning of the Bio-diesel from Used Cooking Oil (UCO) Plant and
its continuous operation is the complete responsibility of the APPLICANT including
arranging the entire land and finance.
c) Bio-diesel from Used Cooking Oil (UCO) to be supplied shall meet IS 15607:2016 as
revised from time to time.
d) Prospective bidders need to quote the capacity of the plant they propose to be set up.
There will be no minimum designed capacity specified for being eligible to bid.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
e) Possible locations for setting up of Biodiesel plants from UCO and Coordinating OMC is
given in (Annexure-III GA / Additional Cities under EOI)
14) Qualification Criteria
a) The APPLICANT should be of minimum 21 years of age (in case of individual
APPLICANT).
b) The APPLICANT shall be of Indian nationality AND/OR a company registered in India
AND/OR partnership firms AND/OR Joint Ventures AND/OR Non-Resident
Indians/Persons of Indian Origin AND/OR a Multi-National Company having its registered
office in India / Overseas Corporate Bodies having its registered office in India.
c) The APPLICANT shall follow all the statutory norms as prescribed from time to time by
Government of India or local government/government bodies for setting-up and its
operation & maintenance of the Bio-diesel from Used Cooking Oil (UCO) Plants.
d) The APPLICANT should have a valid Digital Certificate for entering details in the e-
tendering portal.
e) Evaluation of the EOIs shall be carried out of a total of 100 marks allocated as per table
hereunder. The prospective APPLICANT has to score minimum of 35 marks to qualify.
f) Applicant/Bidder should clearly mention the sourcing City/districts of UCO and plant
location. Applicant/Bidder cannot source UCO from GA other than the selected GA.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
The scheme is to be implemented in a rapid manner in 200 cities targeted by as per the
EOI, a number of documents like registrations certificate; work experience proof, financial
statements, technology certification, UCO conforming letter from producer/ supplier etc.
are to be provided by the Applicant as proof documentary evidence on the above
parameters. All documents submitted by the Applicant shall be considered as authentic
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
during the evaluation process and evaluation shall be conducted based on the
documents submitted in the e-tendering portal & no further investigation or physical
examination of the claims made through submitted documents by the applicant shall be
carried out
But in case at a later stage it is found that any of the information furnished in the
documents submitted are not authentic/genuine, the application shall be rejected. If LOI
has been issued, the same shall also stand cancelled. The party may be put on holiday
listing for 2 years.
i) Documentary Evidence
Past Experience: Copy of Work Order / Purchase Order / LOIs issued to the firm will
be considered. In case the Applicant has set up their own Plant, value of Fixed Assets
as per the Balance Sheet of the Firm duly certified will be considered. For verification,
the balance sheet of the year / subsequent year on which the Plant was set up shall
be undertaken. In certain cases, where it can be established that the work has been
done and / or the Applicant has set up their own Plant but the value could not be
ascertained, marks will be awarded as per the criteria 'Minimum 1 project with
investment of up to INR 1 Crore'.
Turnover: The sale from core business of the firm will be considered for turnover.
Income from incentives, tax benefits, deductions, etc. shall not be considered in
turnover. The relevant profit & loss / income and expenditure statement duly certified
shall have to accompany EOI submissions.
Technical competencies & tie-ups: In case of technical tie-ups, the following will be
considered during evaluation
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
15) Risks
a) The APPLICANT should be well aware of the various risks involved in the setting up the
Bio-diesel Plant and its marketing and should conduct independent due diligence before
committing to any investment decision. OMCs shall not be responsible for any of their
business decisions or any future losses arising due to any unforeseen circumstances.
b) The applicants shall specify from which city he is appling for EOI. The concerned OMC
for the particular city will be the coordinating company for all documentation, commercial
agreement etc.
c) However, the production of the plant should be distributed among IOC, BPC & HPC
based on the formula as decided by OMCs. Further LOI will be issued by respective
OMCs and agreement will be executed by the applicant with each OMCs for supply to
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
The prospective APPLICANTS shall clearly specify the name of the concerned OMC for
their respective City (Geographical Area). The details of City (GA) are given in
(Annexure-III GA /Additional Cities under EOI)
The APPLICANTS should clearly mention in the following table:
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
Certification by FSSAI of
UCO based Bio diesel
Transportation by
UCO collection Bio Diesel Branding
tankers to OMC
from FBOs, Production /Retailing
installations/
hotels, etc plant Retail Outlets
Denaturant
.
By OMCs
By Producers
gddfgfdfdhE
pProducers
Model –I: Collection, Aggregation and conversion of biodiesel by single entrepreneur.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
18) Pricing Framework of Bio-diesel produced from Used Cooking Oil (UCO).
(To be supplied to OMCs Fixed for current EOI cycle upto September 2020. The price will
be reviewed at the end of 5 years.)
The ex-factory UCO based Biodiesel price will be fixed for five (5) years as per following
rates:
Period Basic Price Remarks
Fixed for one year from date of release of
1st Year(Aug’19-Sep’20) Rs. 51/ litre
first EOI in 2019
2nd Year (Oct’20-Sep’21) Rs. 52.7/ litre Based on 3.4% average CPI inflation for
2018-19
3rd Year (Oct’21 – Sep’22) Rs. 54.5/ litre
Based on resultant escalation factors of CPI index 2021-22
4th Year (Oct’22 – Sep’23)
which will be applied for 3rd year price.
Based on resultant escalation factors of CPI index 2022-23
5th Year (Oct’23 – Sep’24)
which will be applied for 4th year price
The price formula after 5 years may be revised by OMC before expiring of 5 years.
However, Transportation rate as per slab (Annexure X) & GST @ 12% as applicable
from time to time shall be payable additional to above price.
Finalization of APPLICANTS as mentioned in this EOI Document is an ongoing process as
mentioned in the Notice Inviting Tender, which may be further extended depending on the
decision of OMCs. OMCs reserve the right to discontinue the process at any point of time
without assigning any reasons. All applications received shall be evaluated periodically
against the qualification criteria mentioned in this EOI Document. On evaluation, if
applicant is found to have submitted incomplete or ambiguous documents in support of
any qualification criteria, a techno-commercial query may be sent to the applicant seeking
clarification / required documents in support of the qualification criteria.
The empaneled APPLICANT shall be informed by the coordinating OMC regarding their
empanelment based on the documents submitted against qualification criteria.
APPLICANT must submit application only after verifying their qualification against criteria
mentioned in this EOI Document
19) GENERAL
a) This document contains details including the cover page, Notice Inviting EOI document
and annexure.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
b) All revisions, clarifications, corrigenda, addenda, time extensions etc., to the EOI will be
hosted on Central Public Procurement Portal of Government of India
(https://eprocure.gov.in/cppp/); IndianOil e-tender website
(https://iocletenders.nic.in/nicgep/app); BPCL website (www.bharatpetroleum.com) and
HPCL website (www.hindustanpetroleum.com) under Tenders and contracts.
APPLICANTs should regularly visit these websites to keep themselves updated.
The EOI complete in all respect for Indian Oil Corporation Ltd., Bharat Petroleum
Corporation Ltd. and Hindustan Petroleum Corporation Ltd. should be submitted only
through online portal of coordinating OMC of a GA, detailed as under
Name of coordinating OMC E-tendering portal
Indian Oil Corporation Ltd. https://iocletenders.nic.in
Hindustan Petroleum Corporation Ltd. https://etender.hpcl.co.in
Bharat Petroleum Corporation Ltd. https://bpcleproc.in
a) The APPLICANT shall also furnish self-certification of being not under liquidation, court
receivership or similar proceeding in support of their fulfilling the eligibility criteria. The
same to be provided for all the partners, wherever applicable. A format for the same is
attached as Annexure II
b) OMCs will not be responsible for any cost or expenses incurred by the APPLICANT in
connection with preparation or delivery of EOI.
c) After the empanelment/selection of the APPLICANTS as per the evaluation criteria, the
following shall be the procedure
– Binding LOI document
– Signing of Commercial Agreement based on commencement of production of
Biodiesel.
d) After acceptance of LOI, APPLICANT to submit a bank guarantee in leu of security deport
amount of Rs. 5 lakh per plant, to safeguard investment of OMCs towards installing
blending capacity at terminal or creating retailing facility at RO of Bio-diesel from Used
Cooking Oil (UCO). The security deposit shall be valid for 18 months with additional 6
months claim period.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
e) The APPLICANT is required to furnish all information and documents as called for in this
EOI in English language. Any printed literature / documentary evidence submitted in
another language, along with the EOI documents needs to be accompanied by an
authentic English translation, in which case, for the purpose of interpretation of the
document, the English version will govern.
f) OMCs reserve the right to call the APPLICANT for presentation. OMCs will not be
responsible for any cost or expenses incurred by the APPLICANT, for the same. Also, the
representatives from OMCs may visit the plant site(s) of the APPLICANT for verification.
The APPLICANT shall have no objection whatsoever in this regard and shall facilitate
OMCs visit.
g) Reconstitution of Firm
The applicant may request for change of constitution of the firm due to various reasons
such as arranging the finance, arranging the land etc. Such request will be considered on
case to case basis as per the merit of each case
i) The word Tender mentioned in this document/ Annexures shall mean the same as EOI
document.
The following are indicative but not exhaustive terms and conditions for supply of UCO
based Bio-diesel to OMCs
a) Business model
Bio-diesel from Used Cooking Oil (UCO) to be sold under brand name of the
respective OMC.
Coordinating OMC shall provide the location wise allocation to each OMC basis the
requirement provided by to them by each OMC.
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
Applicant shall enter into supply agreement with each OMC based on the advice from
the co-coordinating OMC i.e. IOC, BPC, HPC and Bank Guarantee of 5% of the LOI
amount shall be submitted as security deposit to each OMC.
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
Manufacturers need to enter into contract with respective OMCs & submit a Bank
Guarantee after placement of LOI as per Biodiesel procurement policy of the OMCs at
that time.
Manufacturing facility including testing facility may be inspected by field visit by a
multi-disciplinary team from OMCs for verification of all the claims made by
manufacturers.
If it is found that manufacturer have made any false claim, commercial agreement
may be cancelled by OMCs and BG will be forfeited
Biodiesel supplied from manufacturers will be sold either as B100 at retail outlets or
after blending with HSD under brand name of respective OMC.
After successful supply of 1st TT load to any of the OMC locations, supplier shall be
eligible for refund of the security deposit submitted to the coordinating OMC at the
time of issuance of LOI. The applicant shall approach the coordinating OMC for the
same. Coordinating OMC shall refund the security deport after completing the laid
down procedure for the activity.
In case, supplies are not maintained for a continuous period or are intermittent, OMCs
shall be free to either suspend supplies or terminate the commercial agreement, en-
cash the BG and obtain Biodiesel from other sources at producers’ risk & cost with
applicability of Price Reduction Clause/penalty as per Biodiesel supply agreement for
the OMCs.
e) Supply Conditions
The production of Bio-diesel shall be synchronized to market demand/installed
blending facilities at terminal/dispensing facility of designated RO.
Offer for installing UCO based biodiesel plants will be handled/coordinated by
respective OMC for the city (Please refer Annexure III) however, product from each
plant will be distributed among OMCs
In case the applicant found to be producing Biodiesel other than UCO after
commissioning of the plant, the agreement with OMCs stands withdrawn & BG shall
be forfeited.
In case applicant found to be supplying Biodiesel from UCO to other than OMCs
which applicant had enter into agreement the agreement with OMCs stands
withdrawn & BG shall be forfeited
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
In case applicant wishes to supply biodiesel from UCO to other than OMCs. It would
be mandatory to obtain NOC from all the OMCs to which he committed to supply.
The term of commercial agreement shall be 10 years. The same shall be extended on
mutual consent.
During the supply of Biodiesel to OMCs if it in any point of time is observed that the
product is not meeting the IS 15607:2016 (any further revision from time to time).
OMCs may terminate the contract & applicant may be put on holiday listing for 2
years.
f) Supply Disruption
In the event supplies are not maintained for a continuous period or are intermittent,
OMCs shall be free to either suspend supplies or terminate the commercial
agreement and obtain bio-diesel from other sources at producers’ risk & cost.
g) Agreement
h) Bank Guarantee
APPLICANT to submit a bank guarantee amount of Rs. 5 lakh per plant, to safeguard
investment of OMCs towards installing blending capacity at terminal or creating
retailing facility at RO of Bio-diesel from Used Cooking Oil (UCO).
i) Approvals
Seller shall obtain all necessary statutory approvals for its Facility and Equipment.
j) Safety Procedures
Both parties shall follow all the applicable safety procedures.
APPLICANT shall also have to essentially sign an Integrity Pact (IP) document for
participating in this EOI (Placed at Annexure IV).
Pro forma of Integrity Pact (IP) of IndianOil, BPCL, HPCL has been uploaded as integrity
pact (IP) form. APPLICANT shall be required to download and print it such that it is
legible. All pages of the printed copy of IP should be duly signed by the authorized
signatory and stamped all the pages, with two witnesses name, address & signature and
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
place & date. Thereafter, that copy should be scanned and uploaded by APPLICANT
along with other EOI documents. This document is essential and binding.
Any dispute arising out of this EOI shall be resolved amicably through discussions in
good faith with a view to expeditiously resolve such dispute. In the event the dispute
persists, the Parties agree to resolve the dispute by conciliation in accordance with
provisions of Indian Oil Conciliation Rules, if applicable. In the event of non-resolution of
dispute by Conciliation within a period of 60 days or non-applicability of IndianOil
Conciliation Rules, the Parties agree to settle the dispute by arbitration in accordance
with the Rules of SCOPE Forum of Conciliation and Arbitration (SFCA) The venue for
arbitration shall be New Delhi and the language of arbitration shall be English. The
arbitrator shall pass a reasoned award and the award of arbitrator shall be final and
binding on the Parties.
Applicants to note that any queries related with EOI of the concerned coordinating OMC
to the particular city or geographical area are to be submitted online only at sites
mentioned below against the respective coordinating OMCs. Queries/clarifications
received in any other form are liable to be unanswered. A written reply from the
concerned OMC will be given on the same site and that answer / clarification shall be
visible to all the Applicants except confidential information.
The laws of Union of India shall govern all matters concerning the EOI. Any issue arising
related to the EOI or the selection process shall be adjudged by the courts in New Delhi,
India alone.
IndianOil/BPCL/HPCL reserves the right to accept or reject, any or all EOIs received at its
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EOI No: UCO-10, dated 27.08.2020 System ID UCO-10
EOI FOR PROCUREMENT OF BIODIESEL PRODUCED FROM USED COOKING OIL, ACROSS INDIA
The APPLICANT must provide a Cover letter on his official stationery (letter head) along
with their EOI in the format provided as Annexure-I with the “FORMAT FOR
SUBMISSION OF EOI”. The same shall be submitted online on and no physical copy of
the EOI documents shall be accepted.
27) LAST DATE/TIME OF SUBMISSION OF EOI
a) The EOI should be uploaded in the portal of respective OMC only as per timelines in the
Notice Inviting Expression of Interest (NIEOI) document.
b) The EOI complete in all respect for Indian Oil Corporation Ltd., Bharat Petroleum
Corporation Ltd. and Hindustan Petroleum Corporation Ltd. should be submitted only
through online portal of respective OMC only, detailed as under. No physical EOI shall be
accepted.
Name of OMC E-tendering portal
Indian Oil Corporation Ltd. https://iocletenders.nic.in
Hindustan Petroleum Corporation Ltd. https://etender.hpcl.co.in
Bharat Petroleum Corporation Ltd. https://bpcleproc.in/
This advertisement does not constitute and will not be deemed to constitute any
commitment on part of OMCs to off-take BIO-DIESEL FROM USED COOKING OIL
(UCO).
OMCs have the sole discretion to qualify or accept the EOI and reject the proposal
without assigning any reason whatsoever.
Furthermore, this advertisement neither confirms the right nor an expectation on any
party to participate in the proposed EOI.
29) For any queries the following officers of OMC may be contacted