Rapid decline of the US dollar against the Canadian dollar has had an unlikely casualty, as Geological Survey of India’s (GSI) Rs 50 crore plan to acquire Helicopter and Heliborne Survey System has not taken off even after a year of being conceptualised.
GSI is in the process of acquiring a Helicopter and Heliborne Survey System comprising four onboard geophysical sensors for low-altitude detailed geophysical survey in order to detect shallow-level concealed geological bodies of relevance.
The Heliborne Survey System was meant to improve the quality of exploration and for tapping deep seated mineral resources in addition to updating the techniques for ground geological and geophysical survey, precision analytical instruments and deep capacity drills. Administrative approval of ministry of mines (MoM) for Rs 49.47 crore had been received for the Heliborne Survey System and an amount of Rs 18.50 crore has already been paid to Hindustan Aeronautics Ltd (HAL) as an advance payment for the helicopter ?Dhruv?.
Financial sanction for Rs 17.20 crore for acquisition of aero-geophysical survey instruments was accorded by MoM and a MoU was signed with Pico EnviroTech, Canada.
The purchase order was placed at a cost of $ 35,02,240. However, Pico EnviroTech expressed its inability to continue the project primarily on account of rapid decline in the value of the US dollars against the Canadian Dollar since the time of their original bid, which had rendered the project financially unviable for the firm.
To revive the project, GSI then had the option of paying in Canadian dollars, remove some of the deliverables or re-tendering.
Pico EnviroTech in February this year, requested for a price escalation of 20% on the original price, which was later renegotiated to $40, 00,000 which was forwarded to the MoM for approval and sanction.
However, sources said the approval from the Ministry of Finance for the revised price could not be achieved and the time limit for consideration of the revised offer by Pico EnviroTech was March 2008.
?The time limit has already passed and the dollar rates have again made an upward revision and the offer of Pico EnviroTech might not be available on the revised terms and conditions,? the source said.
