New Delhi: The Independent Green Hydrogen Producers Association withdrew its case against Indian Oil Corporation Ltd (IOCL) in the Delhi High Court on Thursday, after the state-owned company cancelled its first tender for a green hydrogen manufacturing plant in February. The court allowed the industry body to withdraw the petition as the cancellation rendered it irrelevant.
In its writ petition, the body had accused IOCL of having a conflict of interest in the tender issued in November. According to the petitioners, the government shouldn’t have the authority to choose who it wants to enter into commercial relationships with, as this would create discrimination among equally qualified parties. They also said the Supreme Court has consistently cautioned against including clauses in tenders that benefit only one bidder.
The petition also contested clause 19 of the tender notice, which granted the right of first refusal to IOCL’s joint venture GH4India Pvt Ltd. It also challenged clauses 20 (xix) and (xvi), which allowed IOCL to reject the lowest bid and exempted its joint venture from submitting the earnest-money deposit. GH4India is a joint venture formed in August 2023 between Indian Oil Corp, Larsen & Toubro and renewable energy player ReNew.
The development is significant as the IOCL tender marked a milestone in India’s efforts to manufacture green hydrogen and determine its commercial viability. Green hydrogen is crucial for decarbonising heavy-duty, long-distance commercial transportation, steel, refineries and other sectors.
After the legal dispute began, IOCL cancelled the tender to build the proposed plant with a capacity of 10 kilo tonnes per annum (KTPA) at its Panipat refinery and petrochemicals complex. It did not provide a specific reason for the cancellation.
Media reports suggest that IOCL is likely to issue another tender to set up a green hydrogen production unit, and that it plans to install such units at all its refineries as part of a ₹2.4-trillion green transition strategy to achieve net-zero carbon emissions by 2046.
The Ministry of New and Renewable Energy (MNRE) is executing the National Green Hydrogen Mission with a budget of ₹19,744 crore. It aims to position India as a global hub for the production, use and export of green hydrogen and its derivatives.
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Published: 04 Apr 2024, 05:27 PM IST