Dear mayank
The significance of this option comes when our design is based on actual nozzle thickness instead of nominal values.
With reference to code, both ID & OD basis design uses difference equations (UG27(c)(1) for ID basis & App.1-1 for OD basis)
In Div.2, almost all designs are ID based.
For eg,
If you are using nominal thickness/schedule for your nozzle, both ID & OD basis are same. Only difference is in the equation only. However ID basis is little conservative among these.
If you are giving actual thickness to your nozzles, (ie. you have to maintain some specific diameter for your nozzle), then OD will be more conservative, since required area will be less for smaller diameters.
Do some exercises with same dia/thickness in both options and check the report. You "ll get it for sure.
Thank you
Regards,
Vbn