Haste is not waste for Parikh when clearing power projects

The government had come out with a similar tender inviting bids early last year, but failed to receive any attractive bids. GPC, in the first week of December, suddenly woke up and decided to invite bids for the projects.

The small power projects for which the bids were invited on December 10, 1997 were: Papavav (100 MW), Mul Dwarka (100 MW), Sikka I (100 MW), Sikka II (100 MW), Simar (30 MW), Mandvi (30 MW), and Dahej (30 MW).

Surprisingly, the bid document was for sale for only a week, and the GPCL decided, for reasons known to itself, to fix the last date of submitting bid documents on December 18. Thus, there was a gap of only three days between the last date of buying bid documents, and submit the completed application for core sector projects.

The bid documents were to be submitted along with Rs 25,000 of processing fees, 20 per cent earnest money deposit as demand draft, and 80 per cent of earnest money deposit as bank guarantees.

Next day, on December 19, GPCL called a bidder conference at it’s office in Ahmedabad for scrutinising that all securities are in order before starting the first stage of a two-stage evaluation process.

Subsequently, on December 22, bidders were called to the state capital again for announcing the 11 qualified companies in the first stage after evaluation of 20 proposals which was selected by the rating agency, Crisil, who were acting as a consultant. The companies shortlisted were: Jindal Pipes, Atlantic Seaboard, Mitsui and Co, SVC Superchem, Diamart-TNB, Yasheka Energy, Oakwall Infrastructure Development, Ookwell Engg Lapierre, Pearl Energy & Infrastructure, Eastern Energy, and Torrent Power. Finally, by December 23, four companies were short-listed for the seven power projects, and the names were recommended for issuing of the letter of intent. There was, thus, a time gap of only four days including a week-end, between opening the bid documents, and completion of 20 proposals for the seven sites.

Sources say the companies which were recommended by GPC for the seven “fast tract” power projects are: Atlantic Seaboard, Diamart/TNB, Mitsui and Co, and SVC Superchem Ltd.

On December 23, just a day prior to CM Dilip Parikh’s recommendation to dissolve the Gujarat Assembly, the qualified bidders were announced, and price proposals opened for further issue of letter of intent. In a faxed reply to a questionnaire sent by The Indian Express on Friday, GPCL said: “The Government of India informed the Gujarat Government to recommend barge mounted capacity of 490 MW with details of promoters, location, and fuel vide letter dated December 3rd, 1997. Accordingly, the Gujarat Government authorised GPCL to initiate action by inserting short notice advertisement and finalise submission of proposal to government to the earliest.”

GPCL said: “As a follow up, deputy secretary EPD, (Gujarat Government) vide its letter dated December 18, 1997, requested to expedite the matter all projects including the barge mounted (490 MW). However, GPCL has not taken any decision so far.” GPCL said the evaluation of all the bids is under scrutiny and no project has been allotted so far.

GPCL’s haste to award the projects could be gauged by the fact tht bid documents did not even had the dates updated, but showed same as last year.

All subsequent clarifications/supplementary details were enclosed as a separate booklets with no efforts to compile the information. The whole exercise to award the projects by December 24 deadline by GPCL was expedited on an urgent basis with the key GPCL employees working till late hours to clear the projects. The GPCL board, which have representatives from both the govt and GEB, met this week to give its green signal to the projects.