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Tamil Nadu
LPG tanker operators for conditional participation in tender
M.K. Ananth
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Both sides have agreed for compromise after two rounds of talks
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Namakkal: Members of the Southern Region Bulk LPG Transport Owners Association have decided to take part in the three-year tender called for by the three major oil companies, provided the association's latest demand of reducing the weight tolerance loss claimed by the companies from the transporters was reduced.
The secretary of the association, N.R. Karthik, told The Hindu after the general body meeting held here on Friday that both sides had agreed for compromise after two rounds of talks.
The members had accepted the latest offer from the companies to charge the weight tolerance loss only beyond the permitted limit of 40 kg, which was made during the last round of talks in Mumbai on June 22, he said.
While the companies said that they would not charge the transporters for loss up to 40 kg, they added that they would be charged at Rs. 70 per kg from the 41 {+s} {+t} kg, according to the commercial rate. The operators, in turn, suggested that the companies could charge them the domestic rate of Rs. 25 per kg for loss incurred from 41 kg to 100 kg, he said.
“The companies could, however, charge us Rs. 70 per kg weight tolerance loss if it was beyond 100 kg,” the members added. Representatives of the companies, who participated in the talks, had asked the association to give the suggestions in writing and added that they would come out with a final decision after discussing the issue with their higher authorities.
“We have got consent for the same from our members and would send a requisition letter,” Mr. Karthik added. The members also unanimously resolved to give powers to the executive committee to take a decision on taking part in the tender or not, the secretary said.
According to him, a similar decision has been taken by the three other zones – East, West and North.
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