NHAI mulls annual pre-qualification for developers
March 9, 2011
Highway developers such as Larsen and Toubro, GVK, Reliance Infrastructure, Nagarjuna Construction may heave a sigh of relief with National Highways Authority of India (NHAI) planning to introduce annual pre-qualification of developers.
Accordingly, each interested company will be technically evaluated and given requisite points annually. Such a move had been one of the long-standing demands of the developers, some of whom have been at the receiving end, losing out opportunities to bid financially.
An official told Business Line that the government would start inviting applications from developers within days.
At present, for each project, the NHAI carries out due diligence at request for qualification (RFQ) level. So, for each project, the bidders have to submit documents for technical qualifications, based on which NHAI has to do the calculations and verifications for selection. This activity requires additional time of three-four months. Also, this has led to disputes between the NHAI and bidders on so-called arbitrary decisions.
The new norms cut down on this step, thereby making it easier for both the NHAI and developers. Once the qualifying thresholds are annually evaluated, NHAI can work towards adopting e-tendering at the financial bid level. M. Murali, Director-General, National Highways Builders Federation said (NHBF) the new process will save time and money for developers. It will also reduce disputes.
The new norm is broadly based on recommendations of the BK Chaturvedi committee on highway projects. The committee favours annual pre-qualification exercise, with each applicant (individual and not consortium) being assessed to and permitted to quote his accepted technical score/threshold capacity. Such applicants will be permitted to seek pre-qualification assessment at any time during the year and such pre-qualification and scores accepted thereunder shall be valid for a period of 12 months or the date of September 30 falling next, whichever is earlier.
