Panel strikes down HDO, Daelim, L&T bids for DAP plant

Sanjay Jog & Sambit Datta

Mumbai, Oct 14: The bids put in by Hindustan Dorr Oliver (HDO), Daelim and Larsen & Toubro (L&T) to construct a di-ammonium phosphate (DAP) plant in Rajasthan have been disqualified. The Rs 30-crore joint venture DAP project is being undertaken by Rashtriya Chemicals & Fertilizers, Hindustan Zinc Ltd and Rajasthan State Mines & Minerals Ltd (RSMML) and the three bids have now been disqualified by the joint managing committee (JMC) of the JV partners.

Although HDO had submitted a fresh representation for replacement of both Daelim and L&T by Punj Lloyd as the consortium partner, the JMC has ruled that the proposal was not in order.

Three new technical and commercial bids comprising Krebs Speichim of France, Krupp Uhde (KU) of Germany and Toyo Engineering Corpn (TEC) of Japan, have been opened.

The Noida-based Projects and Development India Ltd (PDIL) has been engaged as consultant to carry out EIA/EMP and risk analysis study for this project. Sources close to the deal said that JMC recalled that the original consortium of HDO and Daelim was prequalified with a provision that the financial position of both HDO and Daelim should be carefully examined. L&T was further allowed by JMC as a third consortium partner.

HDO was allowed to add L&T as a third partner on the grounds that the addition of a financially sound Indian firm to the consortium would strengthen the already prequalified consortium. HDO wanted to remove the original consortium partner Daelim as well as the additional consortium partner and replace them with a new party.

“JMC also noted that L&T opted not to join with HDO as consortium partner as the original specified responsibility of HDO was not allowed to be changed. L&T was very keen on this for value addition to its experience. However, the reason for Daelim to opt out was not understandable,” sources said.

According to sources, JMC concluded that the request of HDO for replacing the originally prequalified consortium partners with Punj Lloyd could not be considered.

In a related development, the consultants and the RCF project team examined the three bids. Two of the bidders KU, Germany and TEC, Japan have offered processes based on use of 100 per cent RSMML rock. However, Krebs Speichim suggested the process based on blend of indigenous and imported rock.

During the discussion of the JMC, it was suggested to all the three bidders to economise project cost. It also discussed the 100 per cent use of indigenous rock with KU and TEC as both parties agreed to give operational guarantees with improved quality of rock as indicated by RSMML.

Kerbs also agreed to examine the possibility of using 100 per cent rock and agreed to revert. The quality of gypsum offered by the three bidders was also discussed. Bidders were advised that the utilisation of phosphogypsum in the cement industry was extremely important since the joint venture has considered only six months storage of phosphogypsum.