KPMG wins race for Petronet-India consultancy

Vol 5, PW 13 (15 Aug 01) Midstream & Downstream
     

Petronet-India has appointed Klynveld Peat Main Goerdeler (KPMG) as consultants to prepare bid documents for the proposed 1,460-km Central India oil product pipeline.

Petronet-India's board chose KPMG from a panel of CRISIL, Price Waterhouse, SBI Caps and ICICI on 8th August at a meeting in Indian Oil's Mumbai office. We learn KPMG quoted the lowest price at Rs30 lakh ($63,000), while CRISIL came second with Rs1.42cr ($301,000).

Price Waterhouse asked the highest amount: Rs4cr ($848,000). Petronet officials were surprised as well as amused at the wide difference between the highest and lowest bids.

"We wondered if some of these people understood the scope of the work." Petronet-India was ready to pay up to Rs70 lakh ($148,000) and was pleasantly surprised at KPMG's low bid. A first meeting to prepare bid documents will be held on 16th August in Mumbai with Petronet-India officials, KPMG and Petronet's legal consultants.

Some 37 companies have submitted "expressions of interest" to BOOT (Build Own Operate and Transfer) what will be India's longest product pipeline, among them Reliance, Larsen & Toubro, Steel Authority of India, Hindustan Construction, Indian Oil, Bharat Petroleum, China Petroleum and Bechtel. "The response looks good," reveals a source.

"But the test is how many of these companies will stay in the race once they see the bid documents."