While the issue relating to the clause, capping number of highway projects a company can bid for and finally execute, still hinges on the Delhi High Court's verdict, two mega highways projects have seen withdrawal of all shortlisted bidders at the financial bidding stage. Also, a large number of big-ticket projects have seen withdrawals by highways construction majors due to the clause.
The two stretches that have seen withdrawal by all six bidders each at the financial bidding stage are, 121 km Vijaywada-Machilipatnam and 71-km Kundapur-Surathkal. The bidders have withdrawn quoting the additional eligibility clause introduced by the ministry of road transport and highways in August this year. The ministry in a letter to NHAI on the issue said, "A bidder shall not be eligible for bidding if the bidder, its member or associate, was during a period of two months preceding the bid due date, either by itself or as a member of consortium prequalified for bid stage in eight or more projects or declared as selected bidder for four projects." This is applicable on all the 53 projects, which the NHAI put on block in September this year. As a fallout, shortlisted bidders started withdrawing from projects, rendering the two stretches with no takers. A top NHAI official, however, said, "In case of the two projects where all the bidders have withdrawn, rebidding will be done." The two projects are a part of Lot I of national highways development programme, phase III. There are 23 projects in the lot worth around Rs 30,000 crore. More than half of the projects have seen withdrawals by highway builders at the financial bidding stage. The bidding for all the 44 projects under phase III is scheduled to be over by December this year. However, had the National Highways Authority of India (NHAI) followed its schedule for financial bidding, it would have wrapped up the process for at least ten projects of Lot I by now. Incidentally, construction major Larsen and Toubro, which was short-listed for financial bidding of 15 projects withdrew from eight. Reliance Infrastructure, which had been shorlisted for 13 projects, has withdrawn from nine projects. Similarly, GMR Infrastructure has withdrawn from six projects. Speaking on the withdrawals by the companies quoting the clause, Gajendra Haldea, principal advisor (infrastructure), Planning Commission, said, "There is nothing wrong in the regulation. The regulation has been imposed to avoid monopoly situation. As far as the projects that have seen withdrawals by all the bidders are concerned, NHAI will take due action in that case." However, M Murali, director general of National Highways Builders Federation, a representative body of highways builders said, "Suppose a company's capacity allows it to take up more projects, why should it be compelled from bidding. Restricting people from bidding and participating in a project will result in under utilizing the capacity. Also, this is against the Competition Law." The clause imposing the caps on the number of projects a bidder can take up has been challenged in the court. However, taking cue from the court's decision on another clause capping number of bidders at financial bidding stage at top five/six, it is unlikely that the bidders will get any reprieve in this case as well. The Delhi High Court in its judgment on Monday said, "The government has the right to implement, amend any rules and regulations on the policy matter, which may be implemented from time to time. Since it is a government policy decision to exempt the deletion of clause 3.5.2 (cap on number of bidders for financial bidding) in model concession agreement in 60 projects, the Court feels they should not interfere in policy decisions http://www.financialexpress.com/news/bidding-cap-leaves-few-takers-for-nhai-projects/381547/ "All you need is ignorance and confidence; then success is sure." --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
