The Indian Oil Corporation (IOCL) recently found itself in a legal battle over its ambitious green hydrogen manufacturing tender.
IOCL, the country’s largest oil marketing company, faced scrutiny after cancelling its tender for a green hydrogen manufacturing unit at its Panipat refinery and petrochemicals complex. The move came after the Independent Green Hydrogen Producers Association (IGHPA), representing leading industry players, raised objections regarding potential conflicts of interest.
The IGHPA, comprising major players like Azure Power, Acme Group, Fortum India, O2 Power, Sprng Energy, and SunEdison Infrastructure, contested the tender in the Delhi High Court. The association questioned specific clauses in the tender notice, alleging favoritism towards IOCL’s joint venture firm, GH4India. Concerns were raised regarding the Right of First Refusal granted to GH4India, along with exemptions from certain tender requirements.
Despite the legal challenge, IOCL has not provided reasons for the tender cancellation and has yet to address the allegations of favoritism. With the next hearing scheduled for March 28, the case underscores the importance of transparent and fair procurement processes in the renewable energy sector.
The cancellation of IOCL’s tender raises concerns about the progress of India’s National Green Hydrogen Mission, which aims to establish the country as a global leader in green hydrogen production and export. Green hydrogen is crucial for decarbonizing key sectors such as transportation, steel, and refineries, making the tender cancellation a setback in India’s transition to sustainable energy.
