Bars a developer if failed to achieve financial closure of three or more projects
GN Bureau | February 16, 2010
The National Highways Authority of India (NHAI) has introduced new norms that bars a developer from bidding for new projects if the company has not been able to achieve financial closure of three or more projects, the Hindu Business Line reported on Tuesday.
The move will help prevent highway contractors and developers from bidding for more projects than what they can handle.
The companies likely to be hit by the move include HCC, IVRCL, KMC, IRB Infrastructure, Reliance Infrastructure and Sadbhav Engineering. They have won national highway projects in the last few months, with two-to-three awaiting financial closure, the report said.
“So, on any given day, in case a company has LoAs (Letter of Awards) for two projects for which it has not achieved financial closure, then it can bid for one more project,” the paper quoted an NHAI official as saying.
The new norms are expected to prevent aggressive bidding by some contractors who garner projects only to spruce up their order books, only to struggle later for funds, said another official.
“For one project, the best bidder has offered revenue share to the government, while the second best bidder has sought subsidy of over Rs.350 crore,” an unnamed source was quoted as saying.
In an amendment issued for several projects, whose bids are due February 19 onwards, NHAI has stated: “A bidder shall not be eligible for bidding if, as on bid due date, the bidder, its member or associate was, either by itself or as member of a consortium has been declared by the authority as the selected bidder for undertaking three or more projects and the bidder is yet to achieve financial closure. A bidder shall be considered as declared selected bidder for the projects of NHAI, where the letter of award (LoA) has been issued.”
The latest move is different from an earlier attempt to limit the number of bidders to the top four-five technically qualifying players, a move that was quashed.
India is focusing on relentless testing, as part of its strategy of ‘Test, Track and Treat’, as the number of Covid-19 tests conducted in a day has risen to cross 8 lakh a day. In the 24 hours to Thursday evening, a record high of 8,30,391 tests were conducted in the country, as
Prime minister Narendra Modi on Thursday launched a platform for “Transparent Taxation - Honouring the Honest” through video conferencing. Addressing trade and industry bodies over video conferencing, Modi said the process of structural reforms in the country’s economy has
Very few of the 200-plus private news channels gave credit to Doordarshan for the live footage of the historic Bhumi Pujan ceremony at Ayodhya on August 5, says Shashi Shekhar Vempati, CEO, Prasar Bharati. This can impact the revenues but that is not what the public telecaster is aiming at.
More than 3.04 crore masks of N95 variety and more than 1.28 crore personal protection equipment (PPE) kits have been distributed by the centre to states and union territories (UTs) as part of their joint fight against the Covid-19 pandemic. Since 11th March 2020, more than 10.83 crore HCQ t
India has been registering more new cases of Covid-19 infection than any other country for the past seven days, yet its rigorous push on testing and thus on early identification is bearing fruits, with the case fatality rate (CFR) going further down to 2.1. In a new high, India has scaled th
Recognising the importance of election manifestos, the supreme court directed the election commission (EC) of India to frame guidelines directly governing the contents of the election manifestos in the case of S. Subramaniam Balaji v. State of Tamil Nadu & Ors. reported in (2013) 9 SCC 659. Although th