The Rs 12,000-crore New Delhi Railway Station modernisation plan may be in for even more delays. The last date for submission may now be pushed by almost a month to February 20, 2009 with proposed changes to the model request for qualification (RFQ) still waiting for a clearance from the ministry of finance. The project had to go for re-bidding after 80 per cent of the shortlisted players in the first bidding process got disqualified over the conflict of interest clause. The railways have now proposed a host of changes to the basic bidding document to avoid confusion and keep bidders in the know of the process.

“After the Planning Commission opposed the changes proposed by us, we approached the finance ministry, which reserves the right to amend the model concession agreement (MCA). We have also asked them to give us a clear definition of what counts as experience in a particular domain such as a railway or an aviation project,” a senior government official told The Indian Express.

The railway ministry has asked for a clear definition of indirect shareholding in the RFQ document, which is amiss in the present one. “There was no clear indication as to how we can calculate indirect shareholding when three companies are involved. We have now proposed a formula and the finance ministry may finetune it,” the official said. Indirect shareholding prevents two companies from participating in the same project bid. If company A holds shares in company B and company B holds shares in company C, a clear formula needs to be worked out on how one would calculate company A’s indirect control over C, he added.

... contd.