Wednesday, October 9, 2013



Delhi Metro had defended bidding process for coaches

NEW DELHI: Delhi Metro Rail Corporation (DMRC) had defended the bidding procedure for procurement of 486 coaches, which was investigated by a two-member panel, according to urban development ministry's affidavit filed in the Supreme Court.

On Hyundai-Rotem (HR) "unwarrantedly" mentioning the cost of coaches in its soft copy for the technical bid, DMRC said this had no bearing on the technical evaluation which was done as per hard copy offers. It was placed before the tender committee.

The probe panel observed, "DMRC had asked for soft copies of technical package not only in the tender but also after the opening of the technical package from the bidders. Therefore it's difficult to comprehend that DMRC was not aware of these facts during the technical evaluation stage as they would have checked the soft copies before asking for fresh CDs after the tender opening."

The panel observed one of the six bidders CAF's general electric consumption (GEC-X) which was lower than that of only Hyundai-Rotem was increased subsequently to changing the train resistance formula by DMRC has raised doubts over its motive, particularly because of the awareness of HR's pricing information during technical evaluation. It felt that HR's bid should have been rejected.

"Since the bids were submitted on one day it cannot take advantage," a source said. They added the complete original record was presented to the Delhi high court that heard this case and had dismissed the writ petition. The order was then challenged in the SC.

On the issue of accepting CAF's bid despite its omission for not putting GEC document in the technical bid DMRC told the panel that the company had submitted it in the financial bid. "It was recorded and considered transparently. The bidder was asked to rectify the mistake," said a source.

The panel observed that CAF's bid should have been rejected and DMRC's failure to do so tantamount to favour the company.

The panel has also found that the DMRC had changed CAF's GEC value, which gave an advantage of around Rs 450 crore to HR to bag the deal. But those familiar with the tendering rejected this saying that the overall GEC of CAF, which includes two components of power consumption, was higher than that of the successful bidder.

MD NAUSHAD ALAM
PGDM 1 SEM

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