The Hindu : Andhra Pradesh News : Officials sceptic about response to new notification

Online edition of India's National Newspaper
Sunday, Nov 28, 2004

Andhra Pradesh

Andhra Pradesh

Officials sceptic about response to new notification

By Our Special Correspondent

HYDERABAD, NOV. 27. The Government is not likely to achieve a wider participation by firms and contractors as expected while reissuing notification for implementation major and medium packages of irrigation projects.

According to irrigation officials, despite the relaxation announced in the new notification on two of the six pre-qualifications--ISO certification and local registration -- the response is not likely to be big. At best, the participation will be by a few, they say.

Many potential participants feel that it will be next to impossible to get proof of local registration and ISO certification, all within a week. They are also of the view that the other four pre-qualifications are also rigid and difficult to fulfil.

A participant seeking inclusion in the panel for major packages should have experience showing business volume of Rs. 400 crores annually for two of the five previous years and show a net of Rs. 100 crores. The firm should have implemented a dam/project worth Rs. 100 crores in any single year of the experience period. In case of medium packages, the corresponding figures are Rs. 50 crores, Rs. 10 crores and Rs. 20 crores. This category firms have, however, been exempted from ISO certification.

The Government, however, is satisfied that the court had upheld the method of "pre-qualified bids" based on which nine firms were short-listed for major packages and 46 for medium ones, and of the EPC/turnkey concept. Meanwhile, the Government has sought return of Rs. 27 crores of mobilisation advance given to contractors who were awarded Sriramsagar packages, in the light of the restarting of the process.

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