Engineers India lobbies hard for projects

Vol 5, PW 15 (12 Sep 01) Midstream & Downstream

Old habits die hard, particularly where Engineers India is concerned.

When liberalisation, competition and economic reform is the new mantra, EIL still clings to Soviet-era ideas. One of which is that it has a God-given right to get contracts from other PSUs.

EIL is lobbying feverishly with its oil ministry masters to get EPC contracts in India. Who cares if such an incestuous relationship gives it an unfair advantage over other EPC contractors On 20th August, EIL chairman Keshav Saran wrote to oil secretary Vijayendra Kaul enclosing a list of 10 PSU oil and gas projects his company is interested in.

Saran adds: "The project should be of a reasonable size for EIL to present it as a 'reference' project in India and overseas, i.e.

, the cost must be in the range of Rs700cr-Rs1,000cr ($152m-$217m). "It shall contain substantial engineering/procurement work.

"The project should preferably derive benefit from the existing customs duty concessions to Indian yards and also competition should be maintained for a large part of the facility. "We propose that MOPNG (oil ministry) request ONGC to consider EIL for award of a process complex in Mumbai High South on nomination basis.

This would meet most of the requirements listed above ..

."Saran was heart-broken that ONGC seemed to have a mind of its own and had launched tenders for the MNW platform in Bombay High North. "The MNW platform was most suitable.

The project is reasonably large. It is located in a 'notified' area.

It would also have given EIL a reference not only for EPC work but also for a process platform, which would be very useful for business in Iran, UAE and Qatar. However, ONGC has gone ahead with the tendering process.


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