RIL breaks into Nacil’s fuel supply club

Mumbai: The Mukesh Ambani-controlled Reliance Industries Ltd, or RIL, has managed to get a piece of the country’s largest jet fuel tender, making it the first private oil company that will supply fuel to the state-owned National Aviation Co. of India Ltd, or Nacil, which was formed by merging Air India and Indian.
RIL won the contract to sell jet fuel (popularly know as aviation turbine fuel or ATF) to Nacil at the Madurai, Ranchi and Udaipur airports.
The rest of Nacil’s contracts, for buying 1.4 million kilo litres of jet fuel for its planes in other airports in the country, have been awarded to state-owned firms, Indian Oil Corp., Bharat Petroleum Corp. Ltd and Hindustan Petroleum Corp. Ltd.
State-owned oil marketing companies have thus far enjoyed a monopoly in the business, fixing jet fuel price based on a mutually agreed formula that is about 70% higher within the country than it is in most airports outside India.
Entry point: Reliance Industries won the contract to supply jet fuel to state-owned Nacil, which operates Air India, at the Madurai, Ranchi and Udaipur airports. (Ramesh Pathania / Mint)
Entry point: Reliance Industries won the contract to supply jet fuel to state-owned Nacil, which operates Air India, at the Madurai, Ranchi and Udaipur airports. (Ramesh Pathania / Mint)
But, with the entry of RIL, Nacil received jet fuel quotes at “competitive rates”, said a senior executive at the aviation firm. The executive did not wish to be identified.
16/04/08 P.R. Sanjai/Livemint

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Categories: Airports Apr 2008, Indian Aviation- In General Apr 2008, NACIL Apr 2008