Indian Railways is weighing award of contracts worth R26,000 crore to state-owned Bharat Heavy Electricals (Bhel) on a nomination basis. The move, a departure from the earlier decision to execute these projects on a public-private partnership (PPP) basis, is a breach of Central Vigilance Commission guidelines discouraging such nominations and a Supreme Court judgment in 2006 which said nomination should be only a last resort. In such awards, a company doesn’t have to compete with other firms or submit any price bid.
The contracts include setting up two factories in West Bengal. For the last 15 months, railways had been testing the projects under PPP mode.
It had shortlisted nine international engineering firms including Alstom, Bombardier, Siemens, GE, Hitachi and Hyundai-Rotem for financial bids.
ref:
http://www.financialexpress.com/news/Railways-may-allot-R26k-cr-projects-to-Bhel-sans-bids/848517/
Sunday, September 18, 2011
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