The government has decided to relax the request for qualification (RFQ) parameters for the $2.4-billion New Delhi Railway Station modernisation plan. After initial teething problems that lead to a re-bidding for the project,the government has decided to relax norms for cross-shareholding among bidders.
This relaxation of the conflict of interest clause was discussed in the public-private-partnership appraisal committee meeting on December 31,2008. As per the changes discussed in the meeting,the government could raise the maximum cross-shareholding among bidders to about 10 per cent or more.
In the earlier tender,bidders with common controlling shareholders (like financial institutions) or other ownership interest got disqualified from the shortlist since it was felt it could lead to conflict of interest. The first tender had stipulated that the level of direct or indirect shareholding by an entity in a single bidder should not be above 5 per cent of the companys paid-up and subscribed capital and more than 1 per cent in any other bidder.
As a result,nine of the 10 listed entities that had bid for project got disqualified at the RFQ stage, a senior government official told The Indian Express.
In line with the proposed relaxation,Indian Railways has revised the deadline for financial bidding in the new tender to March 2009 from the earlier plan of June 2009. Infrastructure companies such as GVK,Larsen & Toubro,DLF and Maytas Infra are believed to be in the race for the new tender being floated by the Indian Railways.
The New Delhi railway station is being modernised on a design,build,finance,operate and transfer model over an expanse of over 86 hectares. The railways had cancelled the earlier tender at the RFQ stage,on account of confusion in interpreting the cross-ownership clause in the tender document.
In the first stage of the RFQ process,companies that bid included Sadbhav Engineering and SREI Infrastructure; Gammon Infrastructure and Emaar-MGF; Larsen and Toubro; DLF,ITNL (IL&FS Transportation Networks) and AWB Infrastructure; Maytas Infra and VIE; Indiabulls Real Estate and GS Engineering,Reliance Infrastructure and Aeropuertus y servicious; GVK with Mitsui and Leighton; KMC Constructions and China Railways 18th Bureau Group; and DB Realty and Deutsche Bahn.
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