The tender floated by Integral
Coach Factory Chennai for acquiring propulsion systems for 141 electric trains
has run into a controversy. The tender, estimated to be worth Rs 1,200-1,500
crore, will open on November 15. Bharat Heavy Electricals Ltd,
which has been regularly supplying locos and equipment to the railways, has
written to the Railway Board complaining that the tender favours three select
Indian companies. Another major manufacturer, who did not want to be
identified, has alleged that the tender conditions favor only one Indian
company. One prominent manufacturer has
reportedly said it would soon file a complaint with the Competition Commission
of India and the PMO as the tender condition did not fulfil the ‘Make in
India’ criteria in entirety. In a letter to Railway Board
chairman Ashwani Lohani, BHEL has said ICF's tendering conditions may cause
cost escalation. “BHEL is getting deprived of the opportunity for being
considered for bulk quantity in view of a change in eligibility criteria,†BHEL
chairman Atul Sobti wrote in the letter. “In the earlier tender, the
qualifying criteria was that the participant should have supplied one AC rake
(one train set), which has now been increased to ten,†wrote Sobti, who is also
the company’s managing director. “I have been told that three
parties may be eligible for bulk tender, whereas BHEL, the only public-sector
company, is getting eliminated. If the conditions are not changed, BHEL will
not only be denied a fair opportunity to submit its competitive bid but the
reduced competition may also preclude the discovery of the most economical
price for Indian Railways,†Sobti said in his letter. Another major manufacturer,
Titagarh Wagons, has asked the railways to increase the tender submission
timeline so that the bids can be more competitive. In a letter to S Mani, GM of
Integral Coach Factory, Titagarh Wagons, has reportedly said, “We have a
feeling that the given timeframe for tender submission is not adequate to
prepare a detailed, most competitive and attractive techno-commercial proposal,
given the volume of this project. Therefore, we earnestly request to extend the
due date of submission by two months." In February, the Department of
Industrial Policy and Promotion (DIPP), had raised red flags over a similar
tender for a train-set project – which had resulted in a single bidder outcome
as a consortium led by rolling stock manufacturer Medha was the sole bidder. In a letter to the Railway Board,
DIPP secretary Ramesh Abhishek had then observed that the eligibility
conditions set in the train-set tender “prima facie seem to be non-compliant to
the public procurement (preference to make in India) orderâ€. The tender was
later scrapped.
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ICF tender for propulsion system triggers controversy
By IndianMandarins - 2018-11-14 10:57:17
The tender floated by Integral
Coach Factory Chennai for acquiring propulsion systems for 141 electric trains
has run into a controversy. The tender, estimated to be worth Rs 1,200-1,500
crore, will open on November 15.
Bharat Heavy Electricals Ltd, which has been regularly supplying locos and equipment to the railways, has written to the Railway Board complaining that the tender favours three select Indian companies. Another major manufacturer, who did not want to be identified, has alleged that the tender conditions favor only one Indian company.
One prominent manufacturer has reportedly said it would soon file a complaint with the Competition Commission of India and the PMO as the tender condition did not fulfil the ‘Make in India’ criteria in entirety.
In a letter to Railway Board chairman Ashwani Lohani, BHEL has said ICF's tendering conditions may cause cost escalation. “BHEL is getting deprived of the opportunity for being considered for bulk quantity in view of a change in eligibility criteria,†BHEL chairman Atul Sobti wrote in the letter.
“In the earlier tender, the qualifying criteria was that the participant should have supplied one AC rake (one train set), which has now been increased to ten,†wrote Sobti, who is also the company’s managing director.
“I have been told that three parties may be eligible for bulk tender, whereas BHEL, the only public-sector company, is getting eliminated. If the conditions are not changed, BHEL will not only be denied a fair opportunity to submit its competitive bid but the reduced competition may also preclude the discovery of the most economical price for Indian Railways,†Sobti said in his letter.
Another major manufacturer, Titagarh Wagons, has asked the railways to increase the tender submission timeline so that the bids can be more competitive.
In a letter to S Mani, GM of Integral Coach Factory, Titagarh Wagons, has reportedly said, “We have a feeling that the given timeframe for tender submission is not adequate to prepare a detailed, most competitive and attractive techno-commercial proposal, given the volume of this project. Therefore, we earnestly request to extend the due date of submission by two months."
In February, the Department of Industrial Policy and Promotion (DIPP), had raised red flags over a similar tender for a train-set project – which had resulted in a single bidder outcome as a consortium led by rolling stock manufacturer Medha was the sole bidder.
In a letter to the Railway Board, DIPP secretary Ramesh Abhishek had then observed that the eligibility conditions set in the train-set tender “prima facie seem to be non-compliant to the public procurement (preference to make in India) orderâ€. The tender was later scrapped.
