Only Indian companies can bid for Bina pipeline

Vol 10, PW 26 (03 May 07) News in Brief
     

Anger is brewing among wholly owned Indian subsidiaries of foreign EPC contractors over “restrictiveâ€‌ terms in the tender to lay a crude pipeline for BPCL’s upcoming Bina refinery in Madhya Pradesh.

Anyone interested in the Rs300cr ($66m) contract for the 937-km, 24-inch diameter pipeline from Vadinar port to Bina should submit bids by 8th May. One source tells us he was shocked to discover that wholly owned subsidiaries (of foreign companies) are barred from bidding.

“This clause is exactly opposite to previous tenders for the Bina refinery,â€‌ he says. If the idea is to restrict the tender to only Indian companies, “a global tender should not have been issued.

â€‌ Attempts to remove this condition have failed. “We suspect this is the handiwork of our Indian competitors,â€‌ he says.

“But it violates the government of India’s foreign direct investment policy.â€‌ He asks: “Why should overseas companies set up subsidiaries in India if they are barred this wayâ€‌