IOCL's HDPE EPCC Tender Raises Red Flags: Indianpetroplus.com Uncovers Deep Risk Imbalances

DELHI, India - July 1, 2025 - PRLog -- In a sharp exposé published on Indianpetroplus.com (https://www.indianpetroplus.com), India's premier oil, gas, and petrochemicals intelligence platform, experts have flagged serious structural issues in the high-stakes EPCC tender for IOCL's Panipat Naphtha Cracker Expansion (HDPE Unit).

The tender, which has seen six bid extensions, now closing on July 22, 2025, is attracting concern across India's contractor ecosystem due to what Indianpetroplus.com describes as "structurally lopsided risk allocation" and a "take-it-or-leave-it" approach to bidder feedback.

Key insights from the investigation include:

• Design and commissioning risk without delivery control: IOCL is handing out free-issue equipment, but contractors remain solely liable for integrating them—a setup that could lead to cascading delays and financial penalties.
• Arbitration clauses skewed in client's favor: Despite repeated bidder requests, IOCL has refused to soften its dispute resolution framework, reducing legal protection for contractors.
• Severe cashflow pressure: The final 10% milestone remains pegged to the Performance Guarantee Test Run (PGTR), even if utility readiness delays lie outside contractor control.
• Rigid bank guarantee and EMD terms: Long-duration BG and EMD requirements, without flexibility or alternate mechanisms, are locking out smaller players and stressing working capital flows.
• Unclear free-issue material delivery timelines: No commitment from IOCL on when materials will be made available, heightening project execution risks.
• Vendor approval complexity: Multi-tiered vendor and licensor compliance structures may derail even experienced contractors, risking rejection at the supply stage.

"This tender looks prestigious on the surface, but dig deeper and the risks far outweigh the rewards for most players," said Indianpetroplus.com's editorial team. "The lack of flexibility, unresolved bidder concerns, and delayed decision-making suggest fundamental issues in project structuring."

For the full analysis and document-backed insights, visit the exclusive coverage here:
IOCL's HDPE EPCC: What is going wrong with it? (https://www.indianpetroplus.com)

Media Contact:
Indianpetroplus Editorial Team
📧 editorial@indianpetroplus.com
🌐 www.indianpetroplus.com