State relaxes norms for Monorail tech providers

Restriction on firms providing to multiple bidders lifted

August 25, 2014 01:51 am | Updated 01:51 am IST - CHENNAI:

In an attempt to kick start the bidding process for the proposed Poonamallee-Kathipara corridor of the Chennai Monorail Project, the State government has decided to relax the norm regarding technology providers.

To be taken up initially at an estimated cost of Rs. 3,267 crore, the corridor will also have a link from Porur to Vadapalani, covering a distance of 20.68 km. This phase of the project will be carried out on Design, Build, Finance, Operate and Transfer basis.

As for the norms for technology providers, no firm could, till now, supply its technology to more than one participant. This condition has been found impractical in the context of monorail as, even globally, there is only a handful of technology providers, says an official.

As per the State’s latest clarification, there will be no restriction on the company of a proprietary technology providing to multiple bidders. The government has also stated that the technology provider’s arrangement need not be on an exclusive basis for any one of the bidders, and that it should not be affected by the provisions of conflict of interest, as stipulated in the documents, inviting request for qualification (RFQ).

The official hopes this will enable more players to take part in the bidding process.

A few days ago, the government issued the clarification on receipt of representations from some applicants. In February, the process for RFQ was initiated and three applicants — Essel & Scomi, Gammon and IL&FS Transportation Network — had responded.

As per earlier schedule, the selection of project developer should have been completed by mid June but applicants had raised a number of queries, for which the project authorities had to prepare a detailed response.

About 10 days ago, the government’s empowered committee met and gave its approval for the response, which has been hosted on the government’s website.

Going by the present schedule, RFQ documents should be submitted before September 9. The government plans to award the contract by November 10.

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