Keeping in view the misgivings/ incorrect information about the new expansion Air Separation Unit (ASU) at RINL on BOO basis published in certain news papers, the following facts are furnished by RINL for clarity and for necessary update of the readers and the public at large.
RINL has awarded a contract to M/s Air Liquide India Holding Pvt Ltd (ALIH) for setting up a 2 x 850 TPD oxygen plant on Build, Own, Operate (BOO) basis with a schedule for completion by Jan’2013. The plant erection was completed by Feb ‘2013, but the trial runs did not start due to contractual dispute between RINL and M/s ALIH on certain terms & conditions. M/s ALIH unilaterally terminated the contract in Dec’14. As M/s ALIH has reneged on their BOO commitment, RINL invoked Arbitration in Oct ’17.
The Arbitral Tribunal (AT) in its award on 02nd Apr’21 directed M/s ALIH to commence commission of the plant no later than 01st May’21 and RINL shall take over the Plant as per the price to be determined by the Tribunal on Book value basis.
In response, M/s ALIH has sought an interim relief from the Tribunal demanding a progressive payment of Rs.85 Cr for commencement of commissioning and certain other commercial conditions. RINL has agreed for the relief sought by M/s ALIH and requested them to commence commissioning of the Plant by 01st May’21, as directed by the Arbitral Tribunal.
During the Arbitration proceedings, M/s ALIH indicated that it takes about 3 months for completing the health check of the equipment (which was erected about 8 years back) and 6 to 7 months for commencement of production, keeping in view that the equipment were sourced from a number of vendors, the criticality of the cryogenic equipment and the safety hazards associated with the Oxygen making process.
Though the above assessment of M/s ALIH sounds reasonable, RINL has been stressing upon M/s ALIH, the urgent need to hasten the process of commissioning.
It is to mention here that out of the total capacity of 1700 Tons Per Day, about 100 Tons of Liquid Oxygen can only be produced Per Day from the ASP BOO Plant, which can be transported through road tankers for catering to the medical requirements.