IOC may respond to RIL's invitation for petrol pumps JV

State-run fuel retailers including Indian Oil Corporation (IOC) are likely to respond by this weekend to Reliance Industries' (RIL)proposal for forming a joint venture for reviving 1,432 petrol pumps it had closed last year.

Reliance had sought expression of interest (EoI) from IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) for possible partnership for reopening the petrol pumps.

"The EoI closes this weekend and in all probability IOC is likely to express its interest in the joint venture," a source in the know of the development said.

Reliance is proposing to hive-off its petrol pumps into a joint venture company and state-run firms have been asked to quote the equity stake they may want in the new venture and their model for operating it.

The partnership with state-run firms would help Reliance overcome the handicap of not being able to use  fuel from its two refineries at Jamnagar in Gujarat because they have been converted into only-for-exports units.

The source said the state-run firms have to decide if it was beneficial to acquire pumps that may eat into volumes of their existing outlets. Also, they need to address how they would handle co-branding of these outlets.

HPCL was not favourably inclined to the proposal while BPCL had not made up its mind yet, he added.