The Delhi High Court on Wednesday upheld the eligibility criteria fixed by the three leading oil marketing companies (OMCs) – Indian Oil Corp Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corp Ltd – for their tenders for procurement of LPG cylinders.
Under the eligibility criteria of the tenders, cylinder manufacturers having common business ownership or management, including sister companies, could submit only a single bid. This was challenged by a batch of petitioners led by Silica Udyog India and its sister concerns on the grounds that the eligibility criteria were arbitrary and curtailed the capacity of each manufacturing unit owned by them to independently participate in the tender process. And if not removed, it would have dire implications for them, potentially forcing them to withdraw from the marketplace altogether, they alleged.
