Delhi HC rejects Man's plea challenging GAIL's re-tending

The Delhi High court today dismissed a petition filed by Mumbai-based Man Industries challenging GAIL's decision to re-bid for the Dahej-Vijaipur gas pipeline project.     

A division bench comprising Justice Manmmohan Singh and Justice Suresh Kait dismissed the plea of Man Industries which was the lowest bidder for three out of the four sections of the pipeline.    

GAIL wanted to re-tender the project to take advantage of the falling steel prices which would help it bring down the project cost.     

"We have decided to go ahead with re-tendering of the project. The tender is already out on our website and the process will be completed in four weeks," GAIL Chairman and Managing Director U D Choubey told PTI after the High Court order.     

GAIL first asked all the four shortlisted steel pipe suppliers to give revised price quotes taking into account the falling steel prices but since the move was challenged by Man Industries, the company decided to cancel the tender and call for fresh bids.     

Man Industries had in the original tender offered $907 per tonne for three sections of the pipeline. Jindal SAW was the lowest bidder for the fourth section at $680.