Tendering, Bid Evaluation and Procurement Contracts India Our Focus Area On Tendering Process for Infrastructure Projects Industrial Projects
What do we talk today
Ø Overview of development of Industrial & Infra projects
Ø Project Identification / Decision Making
Ø Management structuring of the project company
Ø Project Procurement Process
Ø Preparation of Tender Documents
Ø Competitive Tendering Process
Ø EOI / RFQ / RFP
Ø Bid Evaluation Process
Ø Contract Agreement Drafting
Ø Execution of Contract Documents
Ø Discussion clause by clause on Tendering Docs
Ø Disputes Resolution Process
Ø Case Studies
Today’s Sun Rise Sector
Infrastructure is the basic physical & organizational structure necessary for growth of economy
Typically refers to the structures that support society & industries such as Electricity, water supply, transportation etc.
Infrastructure projects in India traditionally owned and managed by the Govt. or their agencies.
Infra projects are highly capital intensive, involve huge sunk capital and long operating life.
Given the massive investment and organizational requirement, private sector participation is being encouraged by the Govt.
Energy (Power, Oil & Gas Pipelines, Nonconventional Energy),
Transportation (Highways, Railways, Ports, Airports, Waterways)
Telecom (Telephone, Internet, Radio & TV, Postal Services)
Mass Rapid Transportation (MRT, Mono Rail, City Bus)
City Roads, Hospitals, Education.
Water Supply & Wastewater treatment facilities
Car Parking, Parks,
Solid Waste Management
Commercial & Industrial
- Industrial Estates
- IT Parks
Housing & Townships
Tourism & Hospitality
Education & Healthcare
Water Supply & Sanitation
Education & Health
Infrastructure Investment Strategies of Govt.
Real growth in GDP could be maintained only by providing a boost to Infra sector.
Standalone Private Investment like the captive power plant, industrial townships of companies etc.
Govt. planned higher allocation of private sector investment in view of constraints due to the emphasis on social sector.
Pvt. Sector investment is not sustainable in financially unviable projects unless the projects are modeled to be viable.
Hence a Public Private Partnership (PPP) model has been evolved for implementation of Infra projects.
Initiatives for developments of Infra sector
- Many sectors opened up for 100% FDI and clearance thru’ automatic route.
- Govt. started a scheme of Viability Gap Finance (VGF), I-T relief etc. to make the projects viable.
- India Infrastructure Financing Co. Ltd., an SPV started by Govt. for financing exclusively to Infra Projects.
- Special PPP cell created by all State Govt. to review & expedite the clearance of pending projects.
- India needs about 4 lakh qualifies project people every year till 2022 in Infra sector alone in India.
- Generation Capacity to be added to XII plan – 64000 MW.
- Transmission lines to be added to XII plan – 60000 CKM
- Ultra Mega Power Projects (4000 MW each)
- Announced – 16, Awarded – 4 SPV Done– 12
- Scope for participation in Power Generation / Transmission projects by being the developer, EPC / PMC, other construction contractors.
- Ambitious National Highway Development Project (NHDP)
- Six-Laning of 19000 km of NH
- 4- laning of 20000 km State Highways
- Two-laning of 25000 km other roads.
- PPP is very successful with BOT, DBFOT etc. models
- 100% FDI allowed, 100% I-T exemption for 10 years
- Grants of VGF, subsidies available
- Various soft loan facilities from ADB, WB, IIFCL are available.
- Annual Growth expected – 12-15% of road traffic.
Dedicated Freight Corridor Corporation of India Ltd.
- Total Investment Rs. 45000 cr, To be commissioned by 2017
- Western Corridor – Delhi Mumbai - 1500 km
- Eastern Corridor – Ludhiana to Kolkata – 1840 km
- Development of Industrial belt around both the corridors with Investment of Rs. 50000 cr.
- GQ and N-S / E-W are also planned
The major development in MRTs about 2000 km in cities.
All 125 airport in the country operated by AAI.
New Airports at Delhi, Mumbai, Hyderabad, Bangalore & Cochrane developed under PPP.
12 small Airport are allotted for expansion by Reliance Infra.
Modernisation of metro airports at Chennai, Kolkata
Greenfield airports planned in Goa, Pune, Navi Mumbai, Greater Noida and Kannur.
70% of the traffic at major ports by volume is dry and liquid bulk.
12 major ports and 187 minor ports along 7,517 km long coastline
11 major ports run by Port Trusts while the port at Ennore is a corporation under the Central Government.
300 million subscribers, Public sector – 43%, Private sector – 57%
Telecom sector growth in last 5 years – 25%
Both CDMA and GSM allowed
100% FDI allowed in Telecom sector (FIPB approval > 49%)
100% FDI in telecom equipment manufacturing
Other Sector Reforms
- 49% FDI via the automatic route in Petroleum Refining and Natural Gas.
- 49% under automatic route in Single brand retail (FIPB approval >49%).
- 26% FDI allowed in defense production. CCS approval for >26%.
- 49% automatic in Power Exchange
- 100% FDI, Automatic till 49%, FIPB>49%
Major Industrial Sectors in India
Oil & Gas Exploration
Petroleum Refineries & Petrochemicals
Chemicals & Fertilizers
Basic Metals (Steel, Aluminum, Copper)
Cement & products
Textiles & garment
Automobiles & Accessories
Electricals & Electronics
Bulk Drugs & Pharmaceuticals