mecon_sansar news lettar (6)

8/6/2019 MECON_Sansar News Lettar (6)

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August - November, 2009 vxLr & uoEcj] 2009

A House of gineering Excellence

MECONs New Director (Commercial)Shri Anup Kumar Ghosh has taken over as MECONs New Director (Commercial) rom 1stSeptember, 2009. Shri Anup Kumar Ghosh was born on 29th February 1952. He completedB.Tech. in Mechanical Engineering with distinction rom NIT, Nagpur and did his Post GraduateDiploma in Business Management rom AIMA, New Delhi. He did specialized training inerstwhile USSR and INCOS course rom IIT Kharagpur.

He was one o the frst batch o MECONs Graduate Trainee in the year 1974. He has beenshouldering the responsibilities o Ports, Material Handling and In rastructure group as GeneralManager o MECON since 2006. He has over 35 years o experience in design & engineeringand worked in various capacities and has been instrumental in steering MECON in completing large scale consultaengineering assignments. He has been responsible or completing large turnkey projects in the area o Ports, HarbBulk Material Handling and In rastructure. He has vast experience in project execution and led rom the ront iturnkey execution o 5A & 6A berths at Mormugao Port or M/s. South West Port Limited and also or the develoo the complete Material Handling System or handling 5.0 Mt/yr coal within time.

He has to his credit turnkey execution o ADB unded 16.0 Mt/yr Coal Handling Plant at Ennore or Tamil Nadu EleBoard be ore schedule. He is presently leading a team or executing Lignite Handling System or 2 x 250 MW TPower Plant or Neyveli Lignite Corporation, Neyveli on turnkey basis and providing design and engineering ser

or 6.0 Mt/yr Integrated Steel Plant o Bhushan at Meramandali, 6 Mt/yr Integrated Steel Plant o JSPL, AngulPatratu, JSL Duburi, Neelachal Ispat etc.

He was instrumental in MECONs restructuring, revitalizing and largely contributed or establishmo Design & Engineering o Ports & Harbour and Material Handling Division. He was associatedprestigious projects and design & engineering activities like Bhilai 4.0 Mt expansion, NMDC Bailadila

JSW at Tornagallu, Bhushan Steel Ltd. & Bhushan Steel & Power Ltd., JSPL, Raigarh, Bokaro 4.0 Mt expansionturnkey supply projects like BF highline upgradation, Sinter Base Mix Prep Plants, Sinter Fines disposal systMangalore Pellet Plant, KIOCL.

He has completed major assignments in development o Ports and Material Handling acilities in major ports

Mormugao, Ennore, Krishnapatnam, Hazira, Gopalpur, Dolvi, Abu Dhabi, Trinidad & Tobago, Qatar, Indonesia, HaKolkata, Paradip, New Mangalore and Visakhapatnam.

He was instrumental in developing several so tware or in-house use and has hands on experience with so twarePROBELT, Auto CAD, MS Project, Primavera, etc.

He has also presented a number o technical papers in several high level con erences like 'International Con erenadvances in Bulk Material Handling in Ports, Power, Steel & Mines', '24th National Convention o Institution o Eng[I] (Mechanical)', 'International Convention o Metallurgical Process Technology' by Indian Institute o Metals, 'NatConvention o Bulk Silo Technology' by NMDC, Hyderabad.

He has organized two prestigious International Con erence on "Bulk Material Handling" and has been selected onprestigious Con erence Board o "Bulk Solids INDIA 2010". An International Con erence & Exhibition on Storing, H& Processing Bulk Solids and Powder organized by NURNBERG - MESSE, BULK SOLIDS HANDLING, GER

Shri Anup Kumar Ghosh Director (Commercial)


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MECON NEWSMECON Procures Order or Project Management Consultancy (PMC) Services or

GAILs Cross Country Pipeline ProjectMECON has procured an order o Rs 21 Crores rom M/s GAIL (India) Limited, New Delhi through open international

competitive bidding on 18th September 2009 or Providing Project Management Consultancy Services or Kochi-Kanjirkkod-Banglore-Manglore-natural gas cross country pipeline project.The project will be done in two phases:Phase I: 24 X 27 Km, 12 X 28 Km, 8 X 41 KmPhase II: 24 x 835 Km, 12 x 38 Km, 8 X 214 Km

Time Schedule or this project is 36 months (24 months or Phase I and 36months or Phase II rom the date o Fax o Acceptance)The proposed pipeline project consists o pipeline rom Kochi toMangalore via Kanjirkkod and Bangalore shall be o 24 line size andthe length shall be 862 km. There will be spur lines o varying sizes o 8 & 12 having total length o 252 Km. Design capacity o the pipelineis 16 MMSCMD and pipeline design pressure is 92 Kg/cm2.

MECONS SCOPE OF WORK :The Project Management Consultant (PMC) is appointed or executing the project right rom Design to Commissioning &project close out on total and single point responsibility basis. The scope o work o the PMC broadly covers the ollowing:

Review o existing DFR inputs including technical & commercial aspects like technology, line sizing, pipelinecon guration, costs etc. Generally X-70 grade line pipes are used in GAIL projects. However, looking into thetechnological advancements in line pipes, consultant may be required to use higher grade line pipe like X-80 grade

Design & Detail Engineering Basic Engineering & Hydraulic study Planning & Scheduling Tendering/ Retendering & Ordering including purchase o all equipment and materials, Customs Clearance and

Transportation o materials/ equipments to site etc. The consultant has to ollow GAILs C&P Procedure or allpurchases. It may be noted that GAIL has recently adopted e-procurement practices and the same practice is requiredto be ollowed by the PMC or this project

Inspection/ Expediting o equipment/Materials being manu actured by vendors including contractors supplied items Certi cation and orwarding the contractors bills to GAIL within the stipulated time Management o Construction Stores, Stores Accounting in GAILs ERP system based on SAP and assistance or

capitalization o the project in SAP Construction Management & Supervision Project Commissioning Project Cost Control, Management & Monitoring Risk Management o the project along with the detailed risk analysis (Qualitative as well as Quantitative) The Risk Management Plan (RMP) & Disaster Management Plan (DMP) is also to be prepared by the consultant Health & Sa ety Management Project closeout

Route Map of Kochi-Mangalore-Bangalore Pipeline

MECON Bags Order or Consultancy Services or Waste Heat Recovery System (WHRS)o Rashtriya Ispat Nigam Ltd., Vizag

MECON has procured order or consultancy services or Sinter Cooler hot gas based Thermal Power Plant or RashtriyaIspat Nigam Ltd., Vizag on July 2009.This unit will generate 20.6 MW electric power by utilizing hot gas emanating rom the Sinter Cooler, which otherwisewould be exhausted into the atmosphere. This Model Project will generate electric power, encurtail emission o a green

house gases thereby ensuring bene t o carbon credit through CDM.This will be the rst installation in India o its kind.


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MECON Pioneered in 'India Electricity Fair', 2009

MECON Entrusted with Detailed Project Report (DPR) or Gogi Uranium Mining ProjectDuring last ve decades, with the increasing demand o energy or the acceleratedagricultural and industrial growth, the nuclear power programme in our country hasgained considerable momentum. Uranium Corporation o India Limited (UCIL) is the onlyorganization in India, which supplies the nuclear uel tothe countrys reactors. Augmentation o the productioncapability to achieve the proposed enhancement in thenuclear power generation capacities o the country has

invigorated development o new uranium mining and processing plants.

Encouraged with signi cant discoveries o uranium deposits at Gogi, Gulburga district o Karnataka,UCIL has proposed to commence underground mining & matching process plant.

UCIL has again entrusted MECON with preparation o Detailed Project Report, Mine Plan Report, EIA/EMP Report. Consideringthe complexities o the uranium deposit, Gogi uranium mine is going to be one o the most complex underground mines designedby MECON. Detailed engineering services shall also be rendered by MECON during the execution o the report. MECON is alsoassisting UCIL or getting the project clearances rom di erent Government statutory bodies, like Atomic Mineral Directorate(AMD), Directorate General o Mines Sa ety (DGMS), Ministry o Environment & Forest (MoE&F) etc.

Headgear frame of vertical shaft at Gogi

Shaft sinking operation in progress at Gogi

MECON Success ully Completed Unit 9 o 2 x 120 MW Captive Power Plant of NALCO, AngulMECON was awarded Detailed Engineering & Consultancy services o 2 x 120 MW CaptivePower Plant (Unit 9 & 10) by NALCO or their Aluminium plant at Angul. Unit 9 has beencommissioned success ully on 20.8.2009.

The work was executed based on di erent packages concept. The scope o work includedpreparation o Technical speci cations, selection o vendors, Engineering & Consultancy, day-

to-day site supervision, inspection & expediting, stores management, testing & commissioningand per ormance guarantee.

Unit 9 of 2 x 120 MW Captive Power Plant of NALCO, Angul

Shri Bharatsinh Solanki, Hon'ble Union Minister for Power, with other dignitaries are being recieved at MECON Stallby Shri J. Mathew , Executive Director (Power), MECON

MECON participated in the India ElectricityFair, 2009 organized by Federation o IndianChambers o Commerce and Industries (FICCI).This mega event was held rom 10th - 12thSeptember 2009, at Pragati Maidan, New Delhi.Honble Union Minister o State or Power, ShriBharatsinh Solanki inaugurated the air.

A team o top brass MECONians, namely Shri J. Mathew, ED (Power),Shri Rupak Biswas,GM, MECON, Kolkata, Shri S.K Chaterjee, DGM(Electrical PT & D) and Shri M.M Bakshi, DGM(PP & EE), represented MECON as honoraryDelegate in this prestigious event in power sector.

Many dignitaries visited MECON stall. Honble Union Minister o State or Power, Shri Bharatsinh Solanki, Dr.Amit Mitra,SecretaryGeneral,FICCI, Shri Y.K Modi, Chairman & CEO, GEEC Ltd and Former President, FICCI are to name a ew. All o them appreciatedMECONs endeavour in providing engineering assistance to the growing Power sector o the nation. The stall attracted large number o

visitors across the globe and number o queries related to power project development were entertained during the event. Shri R. Verma,Administrative O cer, Ms. K.Sharma, Senior Administrative O cer and Ms S. Pradhan, Trainee O cer coordinated the MECON stallduring this air.


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Metex India 2009 - MECON Leaves an ImprintMECON took part in the mega trade show - Metex India 2009held at Trade Centre KPTO, Bangalore rom 16th - 18th September2009, MECON put up one stall displaying the areas o activitiesin its our SBUs (Strategic Business Units). The event wasinaugurated by Honble Union Minister o Mines, Govt. o India,Shri B. K. Handique. Shri Handique appreciated the recent Eco-

riendly exploration being conducted by di erent organisations.Shri Siddharth Rungta, President, Federation o Indian MinaeralIndustries, Shri Sanak Mishra, President, IIM was also present inthe Convention.

Shri B. K. Handique, Honble Minister o Mine, Govt. o India alongwith other dignitaries visited the MECON stall and exchangedhis views with Shri N. Balakrishnan, General Manager, Bagalore.

MECON Dazzled in Delhi High LevelCon erence on "Climate Change Technology Development and Trans er"MECON participated in Delhi High Level Con erence on 'Climate Change Technology Development and Trans er' at VigyanBhawan, New Delhi on October 21st to 23rd, 2009. MECON had setup a beauti ul stall in the exhibition held at VigyanBhawan, New Delhi. This International Exhibition was inaugurated on 21st October, 2009 by Shri Pranab Mukherjee, HonbleFinance Minister, Govt. o India alongwith Shri Jayram Ramesh, Minister o State or Environment & Forest, Govt. o Indiaalongwith with vast number o International and Indian personalities.

A team headed by Shri M.K. Deshmukh, Director (Engineering) alongwith Shri S.K. Singhal, General Manager, Dr. Veejinathan,Shri Ashutosh Bhatt and Shri Rana. S. Chakravarty participated in this exhibition cum high level con erence.

MECONs stall was highly appreciated by all the visitors. MECON stall depicted the strength o its Environmental EngineeringDivision. MECONs endeavor towards CLEAN AND GREEN ENGINEERING was highly appreciated. The recent prestigiousproject wherein MECON is the consultant or carrying out the model project or waste heat recovery system rom sinter cooler(sintering plant) at Rastriya Ispat Nigam Ltd. Visakhapatnam alongwith NEDO and Steel Plantech Company, Japan, is one

rst project in India aiming towards the concept o clean and green engineering. MECON also depicted the EnvironmentalLaboratory setup which is recognized by Central Pollution Control Board and MoE&F New Delhi alongwith other statepollution control board. MECON is acilitating various clients in the eld o Clean Development Mechanism.

The con erence on Climate Change TechnologyDevelopment was inaugurated on 22nd October,2009 at Vigyan Bhawan by Honble Dr. ManmohanSingh, Prime Minister o India, wherein he stressedupon Indias commitment towards reduction o Green House Gases. The guest o honour was H EMr. Mohamed Nasheed, President o the Maldives,Shri Jairam Ramesh, Minister o State, Environmentand Forest, Govt. o India, Mr. Sha Zukang, UnderSecretary General, United Nations, Department o Economic & Social A airs (UNDESA), Shri VijaSharma, IAS, Secretary MOE & F, Govt. o India and

host o International and Indian personalities in theeld o Climate Change and Environment.

Shri B.K. Handique, Hon'ble Minister of Mine, Govt. of India is being received at MECON Stall by Shri N. Balakrishnan, GM (Projects) MECON, Bangalore

MECON Stall at the "Climate Change Technology Development and Transfer" Conference


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Shri L.R. Singh, Director (Technology) is being welcomed by astudent of JVM, Shyamali

Shri B. Sankararaman, Director (Projects) is being welcomed by astudent of JVM, Shyamali

Shri M.K. Deshmukh, then Director (Engineering) reading out the Independence day message in Hindi

Mrs. R. Rath distributing sweets to a boy at Ispat Hospital,Shyamali

Shri A.S. Mathur, ED I/c RDCIS, SAIL, reading out the Independence day message

Mrs. Deshmukh handing over a bax of sweets to a patient at Ispat Hospital, Shyamali

Shri Drona Rath, CMD, MECON

G l i m p s e s o f

C e l e b r a t i o n

G l i m p s e s o f

C e l e b r a t i o n

The 62nd Anniversary o Independence was celebrated with lot o pomp and showat MECON Football Ground, Shyamali, on 15th August, 2009. All MECONians,SAIL employees, members o Commercial Audit and their amily members

assembled or the fag hoisting ceremony. Shri Drona Rath, CMD, MECON,the Chie Guest o the unction un urled the National Tricolour with theNational Anthem sung by the students o JVM Shyamali. Shri A.S.Mathur, Executive Director, CET, SAIL, was the guest o honouro the unction and read the Independence day message andcongratulated all MECONIANS and SAIL Employees.

Shri M.K. Deshmukh, Director (Engineering), MECON gave theIndependence Day message in Hindi. Shri A. Bhattacharya, then Director(Commercial), Shri B. Sankararaman, Director (Projects), Shri L.R. Singh, Director (Technology) o MECON, ShriN.K. Jha, Executive Director I/c SAIL (RDCIS), Shri S.Y.K. Minz, CVO and General Managers o MECON and a largenumber o employees were present on this occasion.

On this auspicious occasion a riendly ootball match was played between MECON ootball team and Veteran players o MECON in the MECON Stadium. A cultural programme was also organized in the evening at Community Hall, Shyamali.


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MECON observed Sadbhavna DiwasOn 20th August 2009, the birth anniversary o Late Prime Minister o India, Rajeev Gandhi, MECON Limited observedSadbhavna Diwas.MECON o ce was ornated with color ul banners with message o national Integrity.

MECONians gathered at the reception hall to take the Sadbhavna Diwas pledge. Shri A.Bhattacharya, the then Director(Commercial) elaborated about the importance o Sadbhavna Diwas in todays world. Sri B.Sankararaman, Director

(Projects) and Shri L.R Singh, Director (Technology) read out the Sadbhavna Diwas pledge in English and Hindi respectively.All MECONians took the oath o irradicting violence and promoting goodwill among the people and creating a healthyenvironment in the work place.

MECON also celebrated Communal harmony Fortnight rom 20th August to 3rd September,2009.

MECON Employees Union Election 200911

MECON Employees Union election or the term 2009 2011 was held on 7thAugust ,2009 at MECON Head O ce, Ranchi. 223 non-executive employees

ranchised their rights tochoose their representatives.The Returning O icerShri M.K. Roy and Asst.Returning O cer Shri S.S.Prasad conducted the MEUelection smoothly. ShriMahadeo Oraon and Shri

Debasis Banerjee weredeclared President and Vice

President respectively.For the other posts Shri Kadir Quarashi was elected asthe General Secretary. Shri Bimal Karkusha, Shri M.S. Pathak & N. Horo wereselected or the three posts o Secretary.Shri Santosh Kachhap was elected as the Treasurer and Shri R. Kerketta wereelected as Jt. Treasurer.Shri Birsa Kachhap, Shri Durga Lal Hela, Shri Lagan Ram, Shri B.Kujur, ShriSuraj Kumar Balmiki, Shri Shiv Shankar Kewat, Shri Rang Dhari Singh, ShriRavindra Gond, Shri Md. Moinuddin, Shri Ram Sewak Ram, Shri RajendraKumar and Shri Nand Lal Ram were declared as the Executive members o theUnion. Our heartiest congratulations to all the elected members.

Congratulation!Major Ratnesh KumarSingh, son o Shri S.V. Singh, DGM, Elect( P T & D ) h a s b e e nawarded the prestigiousSHAURYA CHAKRA

on Independence Day 2009 or act o exceptional bravery and gallantry while

ghting with terrorists in J&K. He wasa pioneer student o Jawahar VidyaMandir prior to joining the NationalDe ence Academy in 1998. He was latercommissioned in the RAJPUT REGIMENTo the Indian army in June 2002. The awardwill be con erred to him personally by Smt.Pratibha Devi Singh Patil, HonourablePresident o India in a ceremony to be heldat the Ashoka Hall, Rashtrapati Bhawan.He has also been awarded the Chie o the Army Sta Commendation Card orgallantry on two earlier occasions.

From Left to Right : Shri L.R. Singh, Director (Technology), Shri B. Sankararaman, Director (Projects) and Shri A. Bhattacharya, then Director (Commercial) conducting the pledge ceremony

MECONIANs taking the Sadhavna Pledge

The newly elected Members of MECON Employes Union (MEU)

Major Ratnesh Kumar


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MECON'S MAGNANIMITY, A PANACEA FOR SOCIETYFormer President Visits Cheshire Home

Former President Hon'ble Dr. APJ Abdul Kalam paid visit toCheshire Home that brought cheers to the physically challengedchildren residing there. Former President distributed sweets /chocolates to the residents o Cheshire Home and met themindividually.

Former President also inaugurated the Kitchen Block andCow Shed constructed by MECON. MECON has beenproviding constant support to Cheshire Home in theirendevor o helping physically challenged children in andaround Ranchi.

Blood Donation CampFor MECON, social responsibility has always been o paramount importance. As an act o benevolence towardssociety, Ispat Club o MECON Shyamali has organised ablood donation camp or its members and employees o MECON, RDCIS & CET-SAIL with the help o Ispat Hospital,Shyamali & Jharkhand State Aids Control Society at IspatClub premises on 12th o July, 2009.

A large number o volunteers came orward and donatedblood or a noble cause denouncing once again that theyare mere mercinaries.

The blood donated at this camp will go to the needy andpoor being treated at Govt. Hospitals in Ranchi district.

Medical CampUnder the Community Medicine Program, MECONsCommunity Development Committee (CDC) along with IspatHospital, Shyamali, organized a day long Medical Campand HIV/AIDS Awareness Program on 30.07.2009 at HolyFaith Mercy Home ( or Orphanage), Joda Bagicha, Khunti.

Dr. Gajendra Kumar, Dr. S. K. Mishra & Dr. J. K. Rath o Ispat Hospital examined the patients in the medical camp.About 150 people including children o Mercy Home orOrphanage and adjoining areas were examined and given

medicines or various diseases. They were also explainedabout importance o hygine and sanitation.

Dr. Kalam with the inmates of Cheshire Home

Volunteers donating blood at Ispat Club "HIV/AIDS Awarness Programme" at Joda Bagicha, Khunti

Dr. Kalam in an interactive session with the inmates.

Dr. Kalam handing over a Calipers to a physically challenged boy,Shri H.L. Choudhury, Chairman CDC & GM Civil assisting Dr. Kalam


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CVCs Guidelines on TenderPRE-TENDER STAGE

Pre-Tender Stage can be sub-divided into two stages Appointment o Consultant

Preparation o Detailed Project Report (DPR)/DetailedEstimate

Appointment o Consultants:The consultant should be appointed in a transparent andcompetitive manner or need based and specialized jobs containingadequate provisions or penalizing the de aulting consultant.Consultants ee should be based on some xed value o thecontract.

Some defciencies in the appointment o consultants as well

as in operating the consultancy contracts has come to noticesuch as Arbitrary appointment without publicity & competition Restrictive criteria adopted in pre-quali cation Pre-quali cation carried out not as per noti ed criteria Credentials not veri ed O er o L1 ignored on fimsy grounds Decision making le t to the consultant

Case-1 : One consultancy rm was appointed as consultant ora housing work costing Rs. 60 crores without inviting tenders.

Organisation should have invited open tenders rom capableconsultants.

Case-2 : Limited tenders were invited rom known consultantsor a Hydro Power Project costing Rs. 130 crores instead o open

tendering.

Case-3 : Initial payment o Rs. 3 crores was paid to the consultantor mobilizing resources or consultancy. The consultant neither

deployed the required man-power as per agreement nor suppliedthe design and drawing in time de eating the very purpose o granting mobilization advance.

Department should have insisted on timely services rom theconsultant and deployment o su cient sta .

Case-4 : Estimate was prepared by an outside consultant, whichwas to be checked by the department. Even the basic rates o various items such as cement and steel had been taken on a higherside. Other coe cients or labour and machinery were also takenon the higher side. Thus e ective control was not exercised onthe consultants job resulting in infated estimates.

Case-5 : A Power Sector PSU appointed 4 Consultants onnomination basis. One Consultant was appointed or thepreparation o the easibility report or the di erent sites. AnotherConsultant or veri ying the estimated cost. A Central PSU was

appointed or the consultancy services up to the commercialoperation date with a provision to escalate rate on account o wagerevision. Awarded another work o consultancy or the supply andinstallation o in rastructure project management so tware andhardware to another Central PSU. Consultancy charges were 46%higher than estimated cost o supply o hardware and so twarewhich was not justi ed by any standard practice.

At best two consultants or the complete job should have beenappointed duly adopting a proper tender system.

Preparation o DPR/Estimate:Success ul contract per ormance depends on the quality o DetailedProject Report. The detailed project report is prepared on adhocbasis based on some old project and not as per the present siterequirements, then there shall be delays, deviations, resulting in

time and cost overrun. The detailed project report is prepared ina hurried manner without checking the con ormity/consistencyamong various schedule o items, drawings, speci cations, andcontract conditions etc. leading to time and cost overrun leavingopportunity or the contractor to exploit and gain pro ts out o ambiguity in the contract.

Estimates should not solely rely on last accepted rates only.Quoted rate needs to be reasonable and justi ed and comparedwith the estimated rates. I the last accepted rates are high orany reason, it results in award o the contract at higher rates sinceno analysis o circumstances under which the last contract was

ordered is gone into. This new awarded rate becomes the basisor estimation o rates or the next tender. Thus this problem has

a cascading e ect.

Organisations do not prepare estimates based on actual siteconditions but based on the borrowed quantities rom someprevious similar project, without modi cations or the currentproject resulting in large-scale deviation, especially in oundationitems.

Case-1 : In case o an earth lling package o one thermal powerproject, an estimate amounting to Rs. 73 crores was preparedtaking into account the local site conditions such as lead involvedin the transportation o earth, cost o the earth etc. L1 bidderquoted Rs. 129 crores which was on the higher side in comparisonto the estimated rates. Tender Evaluation Committee decided tolook into the reasonableness o the estimated cost and concludedthat an amount o Rs. 100 crores could at best be justi ed. Thetenders were discharged.

Total revision o estimate was carried out and in place o initiallyproposed borrow area involving 4-5 kms. lead, a resh borrowarea involving 14 kms lead was stipulated and an estimated costo Rs. 103 crores was worked out. Lowest bid was or Rs. 192crores. The option o assigning the work to some other PSUsengaged in construction work was explored. Most o the PSUswere excluded and nally the work was assigned to NBCC at a


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cost o Rs. 118 crores. Since, the estimate o Rs. 103 crores wasworked out considering all the relevant actors and current rates,assigning the work at a cost o Rs. 118 crores therea ter, does notappear to be justi ed.

The work was being executed by way o borrowing earth romthe area involving a lead o 4-5 kms only, whereas the estimateamounting to Rs. 103 crores was prepared involving a lead o 14kms. There appears to be no justi cation or preparing an estimateand justi ying the cost o award o work considering a borrow areainvolving a lead o 14 kms.

Case-2 : Detailed estimate or a power project X was preparedbased on the rates borrowed rom another previously executedpower project Y. In Project X the electricity & watersupply was supplied to the contractor ree o cost. In projectY contractors were to arrange electricity & water supply.Obviously, the estimated cost o project X should have beenless than or the project Y.

Quantity o extraction o rock in the coal handling area deviatedrom 5000 cum to 56000 cum, which indicates that estimate wasnot prepared on the basis o actual site conditions.

Organisation should have prepared realistic estimates consideringthe local conditions.

Case-3 : In another case o thermal power package, estimateswere taken rom the award value o an exactly similar package o another work which was awarded at Rs. 1,860.33 crores in April,2004. Estimates or the new package prepared in November, 2004were, however, taken as Rs. 2,250.38 crores, 20% higher thanthe last award rates within a time span o 5 months without anyjusti able reasons on record.

Case-4 : One PSU awarded the work on nomination basis toanother Central PSU without arriving at a realistic estimatedcost. As the initial cost was not properly worked out be oreaward, an amount o Rs. 30.50 crores was allowed in addition tothe initial cost without any justi cation. A ter issuing the LOA,an amendment letter to this e ect was issued later on. Even thesanction o the cost estimate was issued a ter approximately 15months o issue o LOA. The work awarded on nomination basisto the PSUs are getting executed through private agencies by aback to back arrangement. Keeping the estimates loose in thebeginning results in award o work at higher rates to private partiesin a non-transparent manner.

The estimated rate is a vital element in establishing thereasonableness o the prices being o ered. It is very importantthat the same is worked out in a realistic and objective manneron the basis o purchases made by other organizations, prevailingmarket rates, the market trend and assessment based on intrinsicvalue etc.

Few check points or preparation o Detailed Project Report: Prepare DPR as per actual site requirement in consultation

with the eld sta ; otherwise it may lead to deviations &delays.

Prepare Estimates on the basis o detailed analysis o ratesconsidering rates prevailing at the project site to arrive atrealistic cost.

Ensure con ormity among nomenclature o the item,drawings and speci cations to avoid ambiguities at a laterstage.

TENDER STAGETender Stage can be sub-divided under our headings

Preparation o tender documents Inviting and opening o tenders Pre-quali cation Evaluation o bids and award o work

Preparation o Tender Documents:An ambiguous agreement leads to poor contract per ormanceand gives an opportunity to a contractor to make pro t out o ambiguous conditions. O ten they are prepared in a hurriedmanner without checking the con ormity among the schedule o items, drawings, speci cations, and contract conditions etc. dueto the reason that di erent parts o the tender document suchas schedule o quantities, speci cations, drawings, and generalconditions prepared by di erent people are compiled withoutcorrelating them. Sometimes they are copied rom old tenderswithout giving a thought to the applicability o the conditions tothe present work.

Inviting & Opening o Tenders:Award o Public Contract through open tender is to ensure transparency in public procurement, to maximize economy ande ciency in public procurement, to promote healthy competitionamong tenderers, to provide or air and equal treatment to all thetenderers and to eliminate irregularities, inter erence and corruptpractices by authorities concerned. This is also required by theArticle 14 o the Constitution o India.

In an open tender, bids are invited giving wide and adequatepublicity.

In the case o small value works, urgent works and in case

only a ew bidders are available in the market, limited tendersrom such bidders who have been empanelled are invited.

Empanelment should be done in a transparent way and updatedperiodically.

Award o contracts on nomination basis is to be resorted to onlyunder exceptional circumstances such as natural calamities andemergencies or there were no bids to repeated tenders or whereonly one supplier has been licensed (proprietary item) in respecto goods sought to be procured.

In Nagar Nigam, Meerut Vs Al Faheem Meat Exports Pvt. Ltd. case,Honble Supreme Court emphasized that all the public tendersshould be in an open and transparent manner with adequatepublicity.


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Publicity : Widest possible publicity through well-circulatednational and local newspapers is essential or greater transparencyin open tenders in addition to uploading NIT on the website.Website publicity is to be given even in the case o limitedtenders.

Receipt o tenders : Suitable arrangements or receipt o sealedtenders at the scheduled date and time through conspicuouslylocated tender boxes needs to be ensured. In case o bulky tenderdocuments the provision or submission o bids to designatedo cials by hand should be made in the tender document itsel .

Opening o tenders : CVC in its circular dated 08.06.2004 hasinstructed to open the bids in the presence o bidders.

Case-1 : One power sector PSU N, awarded the work o main plant and o site civil work o a power projct to anotherconstruction PSU H. The PSU H had an adhoc panel o our rms

or piling work. The PSU H invited bids rom three rms and the4th rm was le t out. Two out o these three were not interested,

so only one rm was le t in the ray. Since there was no broadbased panel o contractors that was prepared in a transparent way,there was lack o competition. The PSU H got very low marginpercentage. Even when, one other interested party contacted thisPSU H, it even did not bother to consider their o er.

In the same work, the PSU H made out a panel or pre-tender tieup by taking the six rms who had approached them and addingthree more working contractors. The panel was prepared in atotally arbitrary manner.

Case-2 : The work o cooling tower (costing Rs. 62 crores) ora power project was awarded on nomination basis to a private

rm even though there are a number o agencies in the marketexecuting similar work. The concerned PSU should have invitedcompetitive tenders.

Case-3 : In another case, Commissions guidelines violated.

I L1 bidder backs out due to any reason, there should be a re-tender in a air and transparent manner.

Case-4 : In one case, the Tender Receipt Register was not oundmaintained. In case o bulky size o the tender documents,in ormation to be displayed at the entrance/reception to ensurea convenient approach or the bidders or submission o the

tender.Case-5 : In another case, the corrected quoted amount was Rs.40.79 crores, which was just Rs. 5 lakh less than the L2 quote o Rs. 40.84 crores. In the price bid, a discount o 11% on total priceis seen to have been mentioned below the stamp and signatureo the tender opening committee. Incidentally, this insertion alsowas not attested by the tender opening committee leaving a doubtas to when the discount amount was added i.e. whether a ter theopening o the price bid ? Such manipulations were possible inthis case as the column refecting number o corrections was blankand was prone to be misused by any interested party.

Case-6 : In another project o a Power Sector PSU, the coveringletter o the price bid o one o the bidders to whom the work was

nally awarded was having a list o all the documents enclosed inthe bid. However, in the same bid, a letter indicating a discountwas also enclosed but this letter was not having any mention onthe rst page o the price bid which was containing the list o allthe enclosures. Incidentally, this bidder could become L1 only a terconsidering the discount as per this letter, which leaves enoughroom or suspicion that the discount letter might have been added

at a later stage.Case-7 : In a case o award o a project o Rs. 3400 crores by aPower Sector PSU to another Central PSU on negotiation basis,the justi cation was given that one Stage Government has alsogiven the work to the same Power Sector PSU on negotiationbasis. The PSU skipped the normal tendering procedure to awardthe work to the Central PSU. This procedure is not correct due tothe ollowing reasons:-

The procedures ollowed by the State Government may not betaken as precedence to obviate procedures adopted in a CentralGovt. Organisation.

Considering the amount involved and the long gestation periodo the project it is not ound prudent to skip the tender processjust to save some time.

As per the Govt.s sanction, this project was to be executed in the10th Plan period and, there ore, there was su cient time available

or the organization to go in or a regular tender process.

Opening o tenders in the presence o trade representatives shouldbe scrupulously ollowed. While opening the tenders by the tenderopening o cer / committee, each tender should be numberedserially, initialed and dated on the rst page. Each page o thetender should also be initialed with date and particularly theprices, important terms and conditions etc. should be encircledand initialed by the tender opening o cer / committee. Alterationsshould be initialed legibly to make it per ectly clear that suchalteration, erasing or cutting was present on the tender at the timeo tender opening and this act be also recorded by the tenderopening o cer / committee.

Pre-qualifcation:The pre-requisites o pre-qualifcation process

Transparency, Fairness, Competition should be ensured. Neither too stringent nor too lax.

Following defciencies were observed Stringent PQ Criteria resulting in poor competition Unduly restrictive criteria, creating entry barrier or

potential bidders. Evaluation criteria not noti ed to the bidders, making the

PQ process non-transparent. Credentials o the bidders not matched with the noti ed

criteria. Credentials o the bidders not veri ed.

The purpose o any selection procedure is to attract the participationo reputed and capable rms with proven track record. It should


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be ensured that the PQ criteria are exhaustive, yet speci c andthere is air and adequate competition. It should be ensured thatthe PQ criteria are clearly stipulated in unambiguous terms inthe bid documents.

Tender Evaluation and Award o Work:This is the most sensitive area susceptible to corruption. Corruptionis inversely proportional to transparency and airness. To ensurethat evaluation is done in most transparent and air & open manner,

ollowing points should be taken care o :-

Evaluation o tenders exactly as per the noti ed criteria. Timely decision within validity period. Complying with Commissions circular regarding

negotiation. Ensuring that conditions / speci cations are not relaxed in

avour o contractor to whom the work is being awarded. Ensuring that L1 is not ignored on fimsy grounds.

Compliance with the purchase pre erence policy o the Govt. Ensuring that work order / supply order is placed within

justi ed rates.

CVC guidelines issued vide ollowing circulars: Circular No. 8(1)(H)/98(1) dated 18.11.1998 Circular No. 98/ORD/1 dated 24.8.2000 / 15.03.1999 CVCs O ice Order No. 13/3/05 (005/VGL/4) dated

16.03.2005 Circular No. 06-03-02-CTE-34 dated 20.10.2003 Circular No. 004/DSP/11-6594 dated 24.02.2005

Circular No. 005/CRD/012 dated 03.03.2007.

Check points suggested to preventabove defciencies:Preparation o Tender Documents

Adopt updated standard bidding document Ensure con ormity among nomenclature o items,

speci cations, drawings, general and special conditions. Avoid stipulating such conditions in the contract, which

are not easible to be operated. Stipulate per ormance guarantee clause to eliminate non-

serious bidders.

Conduct pre-bid meeting (i) to bring clarity regardingspirit o various provisions & (ii) to bring necessarymodi cations, i required. Make minutes o the pre-bidmeeting as part o agreement.

Provide clause to deal with ambiguous provisions (ordero precedence) in the tender document and ambiguity inthe tender submitted by the contractor.

Stipulate all prevailing Govt. policy orders such aspurchase pre erence policy (CVCs Circular dated 15.03.99& DPEs Circular dated18.07.05), customs exemptions ormaterial to be imported etc.

Provide enough sa eguards against misuse o mobilizationadvance (CVCs Circular No. 4CC-1-CTE-2 dated 10.04.07).

Noti y objective evaluation criteria in the tender document. Stipulate condition regarding splitting o quantities, i

required, in the tender document. Noti y criteria o splitting in the tender document itsel i

splitting o work / supply order is envisaged (splitting isenvisaged when L1s capacity is less than required or toavoid heavy reliance on one rm).

Inviting Tenders Pre er open tendering as ar as possible. In case limited tenders are resorted to, prepare & update

panel o contractors / vendors in a transparent way. Ensure adequate & wide publicity. (Web publicity is

necessary even in case o limited tenders). Ensure adequate time or submission o o ers. Upload NIT & tender document on website, even in case

o limited tenders (CVCs Circular dated 11.02.2004). Noti y complete address o place o tender submission

(CVCs Circular dated 08.06.2004).

Opening o Tenders Open the bids in presence o bidders. Attest and account or corrections, omissions, insertions,

overwriting. Prepare on the spot summary in tender opening

register.

Pre-qualifcation Keep the PQ criteria neither too stringent nor too lax. Prepare the PQ criteria speci c to the requirement o the

work in clear terms. Noti y the evaluation criteria in the PQ document Veri y PQ credentials. Evaluate the bids exactly as per the noti ed criteria. Retender i relaxation in PQ criteria is necessary.

(excerpts reproduced rom CVCs Study on Preventive Vigilancein Public Procurement)

For important CVC Circulars, please browse meconin oVigilance

Shri Solomon Yash Kumar Minz, IPS, CVO, MECON Limited receiving Vigilance Excellence Award, 2009 from Shri Pratyush Sinha, Central Vigil ance Commissioner, Delhi in a function

organized by Vigilance Study Circle at Jubilee Hall, Hyderabad on 10/08/09


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