The National Monetization Pipeline (NMP) initiative is now being launched with Indian Oil Corporation Limited (IOCL) setting up its two large hydrogen production units for monetization by global firms.
The Narendra Modi government had launched the NMP initiative for public sector enterprises on 23 August. The IOCL Group, which owns and operates 11 refineries, identified two of its hydrogen production units at IOCL’s Gujarat refinery for monetization. IOCL has invited Global Expression of Interest (EOI) for this on Thursday (30 September).
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On September 28, it was Told that the government is also planning To set up a National Land Monetization Corporation (NLMC) under the Department of Public Enterprises (DPE) to accelerate monetization of land and non-core assets of Central Public Sector Enterprises.
What does EOI say
The EoI, issued by IOCL on September 30, said it is looking for a global or domestic bidder engaged in the operation of such assets, including operation and maintenance as well as transfer of contractual rights or long-term lease. “A suitable structure for monetization will be decided by IOCL at an appropriate stage after considering various factors,” said the document reviewed by News18.
IOCL has specified that the bidder “should be able to bring operational efficiencies, high reliability, increased capacity availability, in addition to reasonable upfront capital payment relating to the transaction”. It has also been specified that the ownership of the land on which the property is situated “will remain with IOCL”. The bidder will produce hydrogen to meet the demand of the refinery.
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Brief Description of IOCL for Bidders
The NMP identifies two broad models of monetization – the direct contractual approach and structured financing. “For the purpose of this transaction, the direct contractual approach shall be applicable,” the document from IOCL said. The document states that both these IOCL units are licensed from M/s Haldor Topso and were commissioned in 2010 and 2021 respectively, each having a capacity of 72.5 kTPA.
The bid document also states that an Indian bidder or a foreign bidder, having an Indian entity to own and operate the property, or even a consortium or joint venture of such firms, bid for the project. can put It also states that the bidder should have built, operated and maintained at least one hydrogen production unit of at least 30 kTPA capacity. In addition, industrial gas production should be the primary business of the bidder, and it should have a net worth of Rs 1200 crore.
IOCL is one of the largest commercial enterprises in India with a turnover of Rs 5,14,890 crore and accounts for almost half of India’s petroleum products market share. The IOCL Group owns and operates 11 refineries with a combined refining capacity of 80.55 MMTPA (Million Metric Tonnes Per Annum).
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