Monday, November 29, 1999

NHAI to take up plan panel``s objection on bidding with Finmin

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New Delhi, July 19 (PTI) Objecting to Plan panel''s contention that the revised norms for bidding to build roads are restrictive, the NHAI today said the new guidelines have evoked good response from private players. The National Highways Authority of India also said it will take up with the Finance Ministry and as to how the Department of Economic Affairs could support some of the views of the Plan panel. "Contrary to the Planning Commission''s contention that stricter norms for highways projects would reduce competition and create restrictive environment, we have received overwhelming response from bidders," a senior NHAI official told PTI. "In fact, the Authority has received as many as 13 bids for Rs 5,700-crore Kishangarh-Udaipur-Ahmedabad project, including from reputed national infrastructure companies as well as three foreign firms," he said. Asked about the reports that the Finance Ministry has endorsed the views of Gajendra Haldea, Advisor to Deputy Chairman, Planning Commission, Montek Singh Ahluwalia, he said the Authority would take up the matter with the Finance Ministry as one of its wings has sought NHAI''s opinion supporting Haldea''s views. "We are going to raise before the Finance Ministry that how one of its wings -- Department of Economic Affairs can support some of the views of the Planning Commission on stricter norms when the decision was taken by the NHAI Board with Secretary, Expenditure, Ministry of Finance, Sushma Nath and Secretary, Planning Commission Sudha Pillai as its members," he said. Besides the Board''s decision was duly approved by the Road Transport and Highways Ministry. Haldea had objected to certain changes in bidding norms by NHAI such as not allowing companies, which have won bids for three road projects but not achieved financial closure, to participate in more bids. In letters to the Road Transport and Finance Ministries, he had said that these changes will create a more restrictive environment for bidders, reduce competition and enable cartelisation. The Finance Ministry, in turn, as per the NHAI official, has asked their views as to whether the recent changes would impose a tighter regime for pre-qualification in road projects. When contacted, Haldea refused to comment on this saying, "No doubt there has been exchange of correspondences with the Finance Ministry, but I will not comment on these." The NHAI Board in March this year had approved stricter bidding norms for highway projects. Among other changes the financial eligibility criteria for bidding was enhanced for large projects and an eligibility criteria was introduced for sub-contractors. .

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