Reliance may win ATF rights soon

With the public sector oil companies refusing to participate in the AAI’s latest tender for selling Aviation Turbine Fuel (ATF), the rights for the Delhi and Mumbai airport are likely to be awarded to Reliance Petroleum.

The AAI was keen on breaking the monopoly of PSU oil firms on ATF sales and said that this time around, the rights would be bid for and the winner would be the company that offered the maximum revenue share to AAI.

Since Reliance was the only bidder as the PSUs didn’t bid, the AAI board said they could not take a decision on the basis of a single bid.

A committee was then set up to internally evaluate what the minimum revenue share should be given so that the ATF infrastructure would be AAI’s. This evaluation is now complete and Reliance’s bid will be opened next week.

If the revenue share for AAI is higher than the committee’s figure, Reliance will be awarded the contract within a few weeks, after it is ratified by AAI ‘s board.