This is the first time that IOC is resorting to two-stage bidding for awarding time charter contract for coastal shipping. IOC had last year called for only price bids for the same contract but was forced to abandon the process after a controversy arose over the bare-boat-charter-cum-demise (BBCD) vessels owned by Amar Shipping and Pratibha Shipping.

The criteria for selection of technical bids, which were opened on October 26, included vessel's age, IGS certification, heating facility, ballasting arrangement and past performance.

The validity of price bids is 90 days from the opening of technical bids.The period of charter has been fixed as seven months from September 1, 1999 with a provision for two extensions of three months each.

Out of the total bids for 44 vessels, the Shipping Corporation of India offered 13, Great Eastern Shipping Corporation (Gesco) offered 12; Varun Shipping, Pratibha Shipping and Amar Shipping offered three each; SR offered five, and Sunmar and Century two each; and Mercator one.

IOC received bids for three vessels of 6,000-10,000 dead weight tonnes (DWT) as against a requirement of one, three of 18,000-21,000 DWT against two, 18 of 21,100-30,000 DWT against 13, seven of 30,100-40,000 against four, and 13 of 40,100-55,000 against 10.

Last year, Amar Shipping and Pratibha Shipping had approached the Mumbai High Court after it was decided that since BBCD vessels do not fly Indian flag they could not be allowed in coastal waters. Under the BBCD scheme, a shipping company can buy a foreign vessel by paying one-fourth of the cost initially and the balance over a time charter period of five years. The ship flies the flag of country of its origin during the period after which it is converted into Indian vessel. Following the case, the two companies decided to convert their vessels into Indian vessels by October 31.

According to sources, though Pratibha Shipping has converted its vessels into domestic flag carriers, as per an out-of-court settlement, by converting its outstanding lease rental into a loan, the Indian National Shipowners Association (INSA) has taken a view that the vessels should fly Indian flag at the time of bidding ie by October 26.