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Highway developers such as Larsen and Toubro, GVK, Reliance Infrastructure, Nagarjuna Construction are unlikely to face disqualification on “frivolous grounds”. This is because National Highways Authority of India (NHAI) will soon start implementing the process to have annual pre-qualification of developers.
NEW NORM
Simply put, each interested company will be technically evaluated and given requisite points annually. Such a move had been one of the long-standing demands of the developers, some of whom have been at the receiving end, losing out opportunities to bid financially.
“We will start inviting applications from developers within days,” an official in the know told Business Line .
CURRENT NORMS
At present, for each project, the NHAI carries out due diligence at request for qualification (RFQ) level. So, for each project, the bidders have to submit documents for technical qualifications, based on which NHAI has to do the calculations and verifications for selection.
This activity requires additional time of three-four months. Also, this has led to disputes between the NHAI and bidders on so-called arbitrary decisions.
The new norms cut down on this step, thereby making it easier for both the NHAI and developers.
E-TENDERING
Once the qualifying thresholds are annually evaluated, NHAI can work towards adopting e-tendering at the financial bid level. “This new process will save time and money for developers. It will also reduce disputes,” said Mr M. Murali, Director-General, National highways Builders Federation (NHBF).
The new norm is broadly based on recommendations of the BK Chaturvedi committee on highway projects.
In its recommendations, the committee had stated, “The pre-qualification may be permitted to be an annual exercise, with each applicant (individual and not consortium) being assessed to and permitted to quote his accepted technical score/threshold capacity. Such applicants will be permitted to seek pre-qualification assessment at any time during the year and such pre-qualification and scores accepted thereunder shall be valid for a period of 12 months or the date of September 30 falling next, whichever is earlier.”
Incidentally, the issue had also been flagged in May 2010, when the Central Bureau of Investigation (CBI) had raided NHAI officials on the Nagpur-Betul project. The investing body had commented, “NHAI had received 13 offers for this project, of which, four were rejected by the NHAI officials on frivolous grounds at qualification stage only.”
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