Indian Oil disputes Adani port claim
The muck has started to fly.
On Thursday, Indian Oil Corporation (IOC) was forced to repudiate a claim that Adani Ports and SEZ Ltd (APSEL) had made in a presentation linked to its recent third quarter earnings announcement that the state-owned oil giant had signed a deal with the Adani group entity that contained a “take-or-pay liability” for using the terminal handling facilities at the Gangavaram port to unload imports of LPG.
A take-or-pay deal obligates buyers to pay a charge even if they decide later that they don’t want the goods or they don’t need to use the facility. The provisions benefit both parties by sharing risk.
