Subhas Projects Set To Bag Rs 147 Cr Bakreswar Contract
Calcutta-based Subhas Projects and Marketing Ltd is on the verge of bagging the contract for the Bakreswar thermal power projects Rs 147-crore water system package. The West Bengal Power Development Corporation Ltdis understood to have favoured awarding the contract to Subhas Projects during its revaluation of the bids of five contenders.
Iindustry sources said the Japanese Overseas Economic Cooperation Fund, which is providing a Rs 1,630 crore loan for the 630 mw project, has also agreed to the contract being awarded to Subhas Projects.
The revaluation was ordered by the power ministry following a controversy over the procedure adopted by WBPDCL for evaluating the bids. The corporation had reportedly selected Larsen & Toubro after the first round of evaluation. The five contenders, namely Gannon Dunkerly, Simplex Concrete Piles, L&T, Subhas Projects and Otto India had submitted their technical and price bids on January 2, 1996.
While inviting the bids, OECF had clarified that price implications for only seven technical items would be considered for tender evaluation and contract negotiation. In other words, there was no scope for giving any general discount or rebate on the original prices submitted on January 2, except on the seven technical aspects. However, it was subsequently found that L&T had offered a general rebate of Rs 64.4 crore on the total price of Rs 201.38 crore that it quoted. Similarly, Otto India offered a general rebate of Rs 31.01 crore after intimating a positive price implication. The other three bids were Rs 172.55 crore by Gannon Dunkerly, Rs 159.87 crore by Simplex and Rs 146.91 crore by Subhas Projects.
Although Subhas Projects would have emerged as the victorious bidder on the basis of these quotations, WBPDCL was attracted by the lower prices quoted by L&T and Otto India after considering the rebates offered by the duo.
However, the overall price reductions by the two companies on the quoted price of January 2 was considered to have violated the specific bid evaluation instructions outlined by OECF.
The issue consequently came to the attention of the power ministry, which sought clarifications from WBPDCL. The ministry also ordered a revaluation of the five bids.