GSPC's Deen Dayal discovery, Part-V: GSPC directed to seek government approval for awarding contracts on nomination basis to EIL
Sept 12: To a request by GSPC seeking approval of award of contract for Onshore Gas Terminal (OGT) to Engineers India Ltd. (EIL) on nomination basis, the Management Committee (MC) has asked the operator to approach the petroleum ministry for its regularization.
GSPC had engaged EIL on a nomination basis as a consultant for project management for creating the entire surface facilities and also as a contractor on an Open Book Estimate (OBE) basis to execute the Onshore Gas Terminal.
The operator has said that an experienced Project Management Consultant (PMC) on nomination basis was thought to be prudent as compared to conventional tendering process for saving time and costs..
GSPC said that EIL was handed over the contract as it is a PSU and has a PMC experience of more than 200 offshore oil and gas platforms, associated inter-connected pipelines and terminal facilities for companies such as ONGC, GAIL and IOC.
Further, the price quoted by the EIL was also found to be competitive and GSPC issued Purchase Order (PO) only after getting it duly approved by the JV. The company said that even the CAG audit for 2011-12 found no discrepancy in the contract.
The MC however has played it safe, claiming that there is no provision in the PSC for award of contract on a nomination basis even if it is awarded to a public sector company and has directed GSPC to seek a special dispensation from the petroleum ministry.