Tuesday, August 07, 2018

RIL finds it tough to get share in ATF supply JV

New Delhi: In what could hit Reliance Industries’ (RIL) aviation turbine fuel business, Airports Authority of India (AAI) and national oil marketing companies (OMCs) have refused to allow the private firm to become a shareholder in a proposed joint venture (JV) which seeks to set up common infrastructure to supply ATF across all major airports operated by the state-owned authority.

Two sources close to the development said that while AAI – under the civil aviation ministry – wants to have only the state-owned suppliers, OMCs, which have established infrastructure at airports, are not in favour of extending “ownership” rights to private players in the JV. They are ready to allow the latter access to the infrastructure for a fee.

In 2015, AAI held consultations with the ministry of petroleum and natural gas along with the OMCs to develop common infrastructure to import and store ATF which would reduce cost of the fuel. Later, RIL showed interest to be a part of the JV but has not found favour.
07/08/18 Saurabh Kumar/Financial Express