Technip or L&T favourite in new Haldia tender

Vol 20, PW 22 (27 Jul 17) Midstream & Downstream

Technip India and Larsen & Toubro are likely to be the main contenders in IndianOil's reissued tender to set up a 1.2m t/y diesel hydrotreater at Haldia, which has much tighter work timeframes than the last tender.

IOC and project consultant Engineers India issued the new tender on July 17 and want bids by August 14. They will open the technical bids on August 15, India's Independence Day.

Importantly the new tender is open only for 'domestic competitive bidding,' unlike the scrapped tender which was open for 'international competitive bidding.' This will keep out China's Hualu Engineering and Technology, rumoured to be the lowest bidder in the scrapped tender, and any other foreign company without a domestic subsidiary. That will mean only Technip, a French company with a local subsidiary, and L&T are left in the race from the previous bidders.

Other domestic companies might also bid, however. To qualify, a bidder now needs to have completed a similar project worth only Rs215cr ($33m) against Rs230cr ($36m) in the last tender.

But a bidder must have an annual turnover of Rs162.94cr ($25m) against Rs138cr ($21.4m) in the scrapped tender. However the most troublesome change involves the completion schedule.

Previously IOC wanted construction completed within 22 months of the LoA with two more months for commissioning but now it wants construction completed within 17 months of the LoA plus two months for commissioning.