Oil PSUs to form JV with MIAL for ATF distribution

To address security concerns and improve efficiency, the three state-run oil marketing companies have decided to form a joint venture with the Mumbai airport for distribution of aviation turbine fuel (ATF).

Petroleum Secretary RS Pandey held a meeting on Wednesday in this regard with the top management of Mumbai International Airport Ltd (MIAL) and senior officials from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).

“There was a meeting with officials of MIAL and the three oil PSUs yesterday. The MoU (memorandum of understanding) to set up a joint venture (JV) company will be signed within the next 15 days to one month,” Pandey said today.

It was suggested that all four JV partners be allotted 25 per cent stake each, the petroleum secretary said.

“It is a tentative proposal (to allot equal stake). An agreement will be finalised in three months, in which all these issues will be assessed and finalised,” Pandey said.

He also said that all pending issues like alignment of dispensing points and line duty optimisation, among others, which were impeding the modernisation of Mumbai airport, had been resolved.

IOC and BPCL operate two fuel dispensing facilities each, while HPCL runs one at the nation’s busiest airport.

The five jet-fuel dispensing points are spread over 18.33 acres across Sahar International Airport, Santa Cruz domestic airport and the old airport at Kalina. “Of these 18-odd acres of land, MIAL is ready to give six acres to the joint venture company at the domestic airport (Santa Cruz) and wants to utilise the remaining land for airport development purposes,” a source said.