PNC Infra bags 2 contracts after govt cancels lowest bid from Chinese firm

China’s loss has turned out to be PNC Infratech Ltd’s gain as the company has bagged two highway construction contracts worth over Rs 1,500 crore, after the Union government cancelled the lowest bid submitted by the Chinese company, Jiangxi Construction.

PNC Infratech, in an announcement to the stock exchanges said that the company received LOA (letter of award) from NHAI (National Highways Authority of India) for two EPC projects of Delhi - Vadodara alignment of the 8-lane access controlled greenfield expressway for an aggregate contract value of Rs 1,547.80 crore.

The bids for these contracts were submitted in January this year and opened in March. Chinese firm Jiangxi Construction had emerged as the lowest bidder.

The bids submitted by Jiangxi Construction have been annulled after the government decided to restrict Chinese companies in India.
 

PNC Infratech offered to match the lowest bidder, or L1, with a 6% price differential.

Earlier this month Union Road Transport and Highways Minister Nitin Gadkari said that India will not allow Chinese companies to participate in highway projects, including those through joint ventures, amid the border stand-off with China.

These terse comments were made by the minister against the backdrop of the border stand-off between India and China in Ladakh that also saw the death of 20 Indian Army personnel in June.

Gadkari had said that the Ministry of Road Transport & Highways would soon come out with a policy banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects.

Currently, only a few projects which were undertaken much earlier, involve some Chinese partners.

The Union government’s decision to bar Chinese firms applies to both ongoing and future projects.

Gadakri also said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs).

The Projects Are:

• 8-Lane Access Controlled Expressway in Baletiya village in Panchmahal District section of Delhi - Vadodara Greenfield Alignment (NH-148N) on EPC mode under Bharatmala Pariyojana in Gujarat, for a contract value of Rs 758.40 crore, with a completion time of 24 months
• 8-Lane Access Controlled expressway near Dodka village of Vadodara District section of Delhi – Vadodara Greenfield Alignment (NH-148N) on EPC Mode under Bharatmala Pariyojana in Gujarat, for a contract value of Rs. 789.40 crore, with a completion time of 24 months