• Defaulter firms may be barred from bidding for power generation and transmission projects

    Companies that have defaulted in setting up any government infrastructure project are likely to be barred from bidding for power sector generation and transmission projects, a senior government official said.

    The proposal has been incorporated in the bid documents for ultra mega power projects (UMPPs) that are likely to be taken up for discussion by the Union Cabinet soon. It is also likely to be replicated in the new bidding format for power transmission projects, the official said. The clause that bars companies from securing more than three UMPPs has been retained.

    An expert committee formed to review bid rules for power transmission projects has recommended insertion of the debarring clause to the power ministry.

    “There was no debarring clause in the existing bidding framework and standard bidding documents (SBD) with regard to the parties who have earlier defaulted,” says the recommendations of the committee, uploaded on the power ministry’s website.

    “The committee was of the view that parties who have earlier defaulted on similar projects must not be allowed to participate in further projects.

    It was also discussed that such a clause has been proposed in the new UMPP document, which has been developed after detailed deliberation and stakeholder consultations by the expert committee constituted for revision of the SBD for location specific power generation projects.”

    Of all the mega transmission projects for which tariff-based competitive bidding was held, only two projects could not be implemented. The project developer, Reliance Infrastructure, had claimed that regulatory clearances led to delay in implementing the projects secured in 2009.

    The debarring clause bars those companies from participating in the auction whose managerial personnel have been charge sheeted or convicted on matters relating to security and integrity of the country.

    Firms convicted by any court or against whom adverse orders have been passed by any regulatory authority casting doubt on their ability to undertake project are also likely to be restrained from bidding. The prospective bidders will have to submit details of all investigations pending against them and their key managerial people.

    The power ministry and state-run auctioneer MSTC will soon launch a bidding platform to shift from the present manual auction process to determine the lowest bidder for power transmission projects. Jimmy Garoppolo Womens Jersey

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