GAIL informs HC: has cancelled tenders for Dahej-Vijaipur pipeline

Font Size

Print

Feedback

Email

Discuss

New Delhi: State-run gas firm GAIL has cancelled tender for three sections of its crucial Dahej-Vijaipur pipeline project where pipe manufacturer Man Industries was the lowest bidder, the Delhi High Court was informed on Wednesday.

Appearing for GAIL, Additional Solicitor General Parag Tripathi informed the High Court that the company had decided to cancel the tender for the three sections after Man Industries challenged its bid to seek lower price.

The Central Vigilance Commission (CVC) had also barred GAIL from seeking ‘revised, lower’ price bids from pipe makers including Man Industries citing fall in steel prices.

To avoid any controversy, GAIL has scrapped the entire Rs 750 crore tender for the three sections, he told the court. He also submitted that as tenders of Dahej-Vijaipur pipeline project (DVPL) challenged by Man Industries are no more in existence, hence its petition does not survive now.

Man Industries had offered $907 per tonne to be the lowest bidder in three of the four sections in which DVPL project was divided. Jindal SAW was the lowest bidder in the fourth section, quoting $680.

Opposing ASG’s submission, senior counsel Dushyant Dave appearing for Man Industries requested the court to maintain ‘status quo’ over the tender and alleged the PSU had suppressed the information regarding direction of CVC to stop the bids.

“We are the lowest bidder and despite that they do not want to give us the contract ... they (GAIL) want a back door entry of some other player,” Dave submitted, adding that as prices of its bids are in public domain, hence it would be difficult for it to beat the rivals again.

GAIL had on the evening of June 8 asked Man and other bidders to submit revised lower bids by June 10 on account of global reduction in steel prices.

“Its totally false ... incorrect ... there is no such change in the global prices of the raw materials used for the pipelines. Moreover, they are taking in account after four months, and that period prices are bound to change,” he said.

Alleging biasness, Dave further contended that GAIL has already awarded contract to Jindal SAW, which was the lowest bidder in the one section of DVPL and for the rest three in which Man Industries was the lowest bidder, the PSU extended time three times to execute the contract.