Corrtech faces three-year GAIL pipeline ban

Vol 18, PW 26 (27 Aug 15) Midstream & Downstream

GAIL chairman BC Tripathi must now decide whether to spare Ahmedabad-based pipeline laying contractor Corrtech International from a three-year ban on GAIL tenders.

A senior GAIL source confirms that Corrtech was blacklisted last month (July) for “submitting information in the wrong format” for a pipeline-laying tender. Corrtech, he explains, failed to submit information regarding its liquidity in a particular format prescribed by GAIL.

“It was not done in line with our requirements,” he says. Worse, the incorrect document which Corrtech did submit was signed by its CEO.

“When we checked we found the information was not correct,” he adds, "so we had no choice but to blacklist them, as that’s the procedure we must follow.” However our source clarifies that the offence in question is not major but GAIL’s procedure in such cases is to blacklist the company nonetheless.

Corrtech, we learn, has appealed to GAIL chairman Tripathi, who has the power to overrule the ban. Our company source declined to share details on the pipeline project where Corrtech’s bid document is under scrutiny.

Corrtech’s rivals however allege that it submitted incorrect documents proving ownership of equipment. More, they claim Corrtech was forced to forfeit its ‘earnest money deposit’ of Rs35 lakh ($58,333).

Corrtech company director Amit Mittal was unavailable for comment despite several phone calls and an email.