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| Man Industries opposes GAIL move on Dahej pipeline |
| Press Trust of India / New Delhi Jun 03, 2009, 16:04 IST |
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Man Industries Ltd has opposed any move by state-run GAIL India Ltd to re-tender sections of the Dahej-Vijaipur pipeline where it was the lowest bidder saying such a move would delay the project of national importance.
Man was the lowest bidder at $907 per tonne in three of the four sections in which Dahej-Vijaipur pipeline project was divided. But since its bid was higher than $680 per tonne,the price of steel quoted by Jindal SAW for one section, there had been talks if its three sections can be rebid.
The company in a statement said it objects to indications of a thinking in GAIL for re-tendering the sections where it was the lowest bidder.
"...GAIL at this stage can not afford any delay in the completion of a project of national importance... (the delay) could cause loss to the economy and nation as well," it said.
The company said it was not correct to say that steel prices in the international markets have fallen by more than 50 per cent since January 2009. "The downward trend in prices was seen in October-December 2008 and anticipated fall until March was factored in the price quoted by Man."
Steel prices stablised in the quarter ended March 31 and have started firming up thereafter, it said adding its bid cannot be compared with Jindal as raw material had to be procured from overseas.
Also, Jindal was second lowest bidder in the sections where Man was lowest bidder.
"In their wisdom GAIL was aware of the price trend at the time of opening of price bid in March 2009 hence they decided to go forward for price opening and finalization of contract thus foreclosing all option of retendering/re-bid.
"Hence any thought of retendering at this stage in view of rising price trend is ill timed and not guided by true facts," Man said.
The company termed as "irrational" the comparison being drawn with Jindal's price bid saying the raw material required against particular section can be procured from limited overseas manufacturer having GAIL approval.
"In fact Jindal SAW, who was lowest bidder in one section is second lowest bidder in the second section with the price difference of 2 per cent from us which reflects that there is no price level comparison between two sections," Man said.
"It clearly proves that quoted prices are realistic, competitive and less than GAIL's own estimates hence there is no basis for claiming any notional difference of Rs 144 crore (between the bid price of Jindal and Man)," the statement said.
Man said in the light of improving economic trends world wide, any "misadventure" of re-tender by GAIL may cost hugely to the exchequer, first in the form of high project cost and second in the form of delayed project completion.
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