HPCL Tender Process

HPCL's (Hindustan Petroleum Corporation Limited) tender process is the competitive procurement system through which India's third-largest downstream oil PSU, now a subsidiary of ONGC, awards contracts for refinery upgrades, petroleum product pipelines, LPG bottling and distribution infrastructure, and fuel retail station construction through its eProcurement portal.

What is HPCL's Tender Process?

HPCL is a Navratna CPSE operating two major refineries (Mumbai and Visakhapatnam), the Rajasthan Refinery at Barmer (under construction), and an extensive petroleum product marketing network. HPCL merged with MRPL and has interests in the Mangalore Refinery.

HPCL's eProcurement portal manages procurement across:

• Refinery: Equipment for Mumbai and Vizag refineries (heat exchangers, vessels, instrumentation, electrical, civil), and the large Barmer Rajasthan Refinery project (Rs 72,937 crore greenfield)
• Pipelines: HPCL's Mundra-Delhi pipeline, HPCL-Mittal pipeline, and product distribution network materials
• LPG: Cylinders, pressure regulators, filling scales, auto carousel bottling plants, LPG tankers
• Retail: Above-ground storage tanks (AST), dispensing units (fuel dispensers), civil and MEP works for HPCL fuel stations (HP, SPEED brand)
• Aviation: Hydrant systems for HPCL's airport aviation operations
• Gas: HPCL Rajasthan Refinery's associated gas processing infrastructure

HPCL uses LPE (Lowest Price Evaluation) for standard material supply. Large EPC projects for the Barmer Refinery use two-stage procurement with international competitive bidding, given the project's scale.

Why HPCL's Tender Process matters for Indian government suppliers

HPCL's Barmer Rajasthan Refinery is one of India's largest ongoing industrial projects at Rs 72,937 crore. Its procurement for process equipment, civil and structural works, instrumentation, electrical systems, and utilities runs into thousands of crore annually, making it the largest single-project procurement opportunity in India's current oil refinery space.

Example

HPCL issues an NIT for supply and erection of 15 crude oil storage tanks (80,000 KL capacity each, floating roof design as per API 650) at the Barmer Refinery site, including civil foundation and all associated civil works, estimated Rs 620 crore. The NIT requires previous experience of minimum 50,000 KL floating roof tanks, API 650 compliance, and ISO 45001 certification. Two qualified contractors bid; the L1 at Rs 570 crore wins.

Frequently Asked Questions

What is the Barmer Rajasthan Refinery project and how can vendors participate?

The HPCL-Rajasthan Refinery Limited (HRRL) Barmer Refinery is a 9 MMTPA greenfield refinery. Vendors must register on HRRL's procurement portal and meet the qualification criteria for specific packages. International vendors can bid directly or through Indian JV/subsidiary. The project has an international competitive bidding component for major process equipment.

Does HPCL coordinate with ONGC for procurement after merger?

HPCL became an ONGC subsidiary in 2018, but each company continues to procure independently through its own portals and procurement systems. There is no merged procurement function; HPCL's procurement manager does not combine requirements with ONGC's. Vendors must register separately with each PSU.

What specifications does HPCL use for petroleum storage tanks?

HPCL specifies API 650 (Welded Tanks for Oil Storage) for above-ground floating roof tanks and API 620 for low-pressure tanks. OISD 118 (Layouts for Oil and Gas Installations) and NFPA standards for firefighting are referenced. All tanks require third-party inspection by a HPCL-nominated TPI agency.

Are there opportunities for small businesses in HPCL procurement?

Yes. HPCL procurement includes small-value categories: office supplies, housekeeping services, maintenance consumables, stationery, all eligible for MSME participation. In refinery and infrastructure procurement, MSMEs typically participate as sub-vendors or suppliers of standard components (gaskets, bolts, electrical accessories) to larger prime contractors.