PROCUREMENT & IMPLEMENTATION OF URBAN … and... · Contracting Options and Case Studies ... Information to Consultants (ITC) ... MIS Change Variations Deviations by

PROCUREMENT & IMPLEMENTATION

OF

URBAN TRANSPORT PROJECTS

S. SIVAMATHAN

GM/DMRC

GLIMPSES OF UT MODES

Structure of Presentation

Objectives of Module

Preparation of Feasibility Report (FR) and Detailed Project

Report (DPR)

Procurement Process

Contracting Options and Case Studies

Procurement Strategies

Preparation of RFQ/RFP

Bid Process Management

Contract Management including condition for „Make in India‟

Case Example/Case Studies

3

Objective of Module The objective is to make the users mainly understand the following:

Components of project life cycle

Preparation of Feasibility Report and DPR, and their appraisal

Preparation of Terms of Reference (TORs) and Request for

Proposals(RFP)

Procurement and contracting strategy for urban transport projects

Preparation of bid documents, contract documents and Agreements

Project implementation options and models

Preparation of various types of procurement documents and

contract documents

Bid process, evaluation and award of contracts

Supervise/ monitor/ manage projects

4

Project Life Cycle

Project Identifica

tion Project Scoping

Planning

Project

Preparation

Appraisal Public

Consultation

Project Structurin

g

Contracting

Implementation

Monitoring &

Evaluation

Project Life

Cycle

PROCUREMENT & IMPLEMENTATION OF UT PROJECTS


UT PROJECT DEVELOPMENT STAGES

A: Conceptual

Macro Planning Study

Pre-Feasibiliy Study

B: Project Formulation

Feasibility Study

Detailed Project Report

Detailed Engineering

C: Contracting Phase

Bid Process Management

D: Project Implementation

Project Implementation

Operation & Maintenance

How to select a Consultant for Preparing

DPR? Procedures and steps for hiring consultants

Preparation of cost estimate and budget

Preparation and issue of:

Request for Proposal (RFP);

Letter of Invitation (LOI)

Information to Consultants (ITC)

Proposed Contract

Receipt of proposals

Evaluation of technical proposals: consideration of quality

Evaluation of financial proposal

Final evaluation of quality and cost

Negotiations and award of the contract to the selected firm

8

SCOPE OF STUDIES - 1 COMPREHENSIVE MOBILITY PLAN(CMP)

(Macro-Planning)

CMP to form the basis of subsequent Studies. Multimodal Transit System based on Vision, Policies, Objectives,

Regulatory Requirements

TYPICAL MULTIMODAL TRANSIT NETWORK


SCOPE OF STUDIES – 2

PRE-FEASIBILITY STUDY

(for Project Identification)

Traffic Estimation on identified corridor(s)

Reconnaissance/Investigation Survey

Preliminary Design of suggested Transit Mode &

Infrastructure

Project Cost

O&M Cost

Technical Feasibility Report


SCOPE OF STUDIES - 3

TECHNO-ECONOMIC FEASIBILITY STUDY

(for Administrative Approval)

Economic Profile Survey & Traffic Survey Leading to Traffic Analysis & Traffic Projection on identified corridor(s)

Preliminary Topographic Survey including limited Geotechnical Investigations, Preliminary Structural Designs for suggested Transit Mode

System Design for selected mode

Assess Equipment Required viz., Buses, Metro/LRT Coaches etc.,

EIA (Environmental Impact Assessment) & R&R (Rehabilitaiton and Resettlement)

Project Cost

O&M Cost

EIRR & FIRR

Techno-economic Feasibility Study Report

PROCUREMENT OF CONSULTANCY & IMPLEMENTATION

SCOPE OF STUDIES - 4

DETAILED PROJECT REPORT (DPR) (for technical approval & Financial Sanction)

Detailed Traffic Forecast Study

Topographic Survey including Geotechnical Investigations, Preliminary Structural Designs for suggested Transit Mode

System Design for selected mode

Issues with Local Authorities for traffic regulation, Shifting of Utilities, land requirements etc.

Assess Equipment Required viz., Buses, Metro/LRT Coaches etc.,

EIA (Environmental Impact Assessment) & R&R (Rehabilitation and Resettlement)

CMP (Comprehensive Mobility Plan)

Project Cost

O&M Cost

EIRR & FIRR

Project Implementation Strategy


PURPOSE

Instruct Bidders on procedure for submission of bids

Describe Goods or Works to be procured or Consultancy Required

Inform the Bidders of criteria for qualification & evaluation

Define Conditions of Contract


PROCUREMENT OF CONSULTANCIES

SCOPE OF STUDIES - 5 PROJECT MANAGEMENTCONSULTANCY (PMC)

Scope depends on extent of delineation/defining the role of PMC & Employer

Preferably the need of PMC should be decided prior to award of works /supply contracts as the project sub-divided into various works to be awarded separately

STRUCTURING PMC BIDDING DOCUMENTS

Specify Requirements in TOR: Project Management/Construction Management Teams

List of All Contracts to be awarded

System Interaction Controls Performance Specifications

Quality Control /Quality Assurance Systems

Procedures for Change order, Claims, Financial control Delegation of authority

Define role of Engineer vis-à-vis Project Management Consultant

Reporting Systems


RFP BIDDING DOCUMENTS

for consultancy projects

Notice Inviting Proposals

Instruction to Consultants (ITC)

Appendix to ITC

Evaluation & Qualification Criteria

Forms for Submission of Proposals

(a) Technical

(b) Financial

Terms of Reference Special Conditions of Contract

General Conditions of Contract

Forms of Agreement.



Appendix to ITC – Important Clauses

Case Example


RFP DOCUMENTATION STRUCTURE

Consultancy Assignments

RAFTING OF TOR

DRAFTING OF TERMS OF REFERENCE

KEY TOPICS

1. Objectives: To be Defined based on previous Studies, possible financing

options, lessons of previous exercises, and the purpose it will

lead for decision making.

2. Scope: Work Components - specify with clarity

Details to which consultant must address in the output

3. Counterpart Effort: What facilities, reports, equipment etc., shall be provided

including reporting and coordination

4. Program for submission of Interim &Final Reports

5. Stakeholders Meeting; Details of manner of conducting and costs

6. Training Needs of Client: Details of personnel, their qualification and period

7. Key Persons & Support Personnel: Qualification, Experience, Period of

Deployment etc.

8. Specifications: If any, required to be specified

Case Example


CONDITIONS OF CONTRACT

(Consultancy Assignments)

GCC •Contract Clauses are substantially different from Works contracts

•Standard Forms of Contract for Consultancy be used

SCC Staffing Schedule of Deployment

Insurance

Performance Securities

Manner of & Implications of change of Personnel

Payment Procedures

Price adjustment

Disputes

Conditions of Contract

Selection of Consultants

The hiring of consultants should be undertaken through competition

among qualified short-listed firms

Selection should be based on technical proposal and on the cost of the

services to be provided (Quality & Cost Based Selection [QCBS]).

Other acceptable selection procedures in addition to QCBS are as under :

Quality Based Selection (QBS)

Fixed Budget Selection (FBS)

Least Cost Selection (LCS)

Single Source Selection (SSS)

Selection of individual consultants

Selection of Consultants

19


RFP DOCUMENTATION STRUCTURE –

Prequalification)

Notice Inviting Tenders (Bids)

Instruction to Tenderers (Bidders)

Appendix to ITT (ITB) or Bid Data Sheet

Bidding Forms

Employer’s Requirements


Special Conditions of Contract

Forms of Agreement.

For Works

Case Example


RFP DOCUMENTATION STRUCTURE

For

Procurement of Works

PART 1- Bidding Procedures

Notice Inviting Bids (Tender)

Instruction to Bidders (Tenders)

Appendix to ITB (ITC)

Forms for Submission of Proposals

Part 2 – Employer’s Requirements

Price Bid Document

Terms of Reference

Specifications


Special Conditions of Contract

Forms of Agreement.

Appraisal of DPR – JnNURM


Compliance of NUTP & TOR

Covers coordination issues with local authorities. Viz.., Traffic Management ,

Utilities Shifting , Land acquisition, Legal & Regulatory

Economic & Financial Viability

Financing options

Procurement Strategy

Procurement Process

Identify Project Implementation

Option

Type of Procurement

Method

Finalise Type of Contract

Qualification and Bidding

Criteria EoI/ RFQ

Queries/ Response

Short listing

Issue of RFP Pre bid

meeting

Amend bid document

Two cover bid submission

Technical Shortlisting

Financial Opening

Financial Evaluation

Issue of LoI

Negotiation and Contract

Signing


EVALUATION OF KEY PERSONNEL QUALIFICATIONS

3. General Qualifications

1 Professional Qualifications 10 (i) Length of Experience and Positions held 5 (ii) Time with the consulting firm 5 (iii) Overseas Experience 10

Sub Total 30 b) Adequacy for the project

i) Project Management Experience 20 ii) Professional Experience specific to the Assignment 25

(i) Specialization/skills useful for project 15 Sub Total 60 c) Experience in Region and Language 2. Experience of working in similar area/region 7 2. Knowledge of local language in addition to English 3

Sub Total 10 Grand Total 100

Contracting Options

Public Private Partnerships (PPP) vs. Engineering

Procurement Construction (EPC) Contracts

26

EPC PPP

Project is implemented by a public/

Government agency. Herein, private

goods/ services can be procured by the

public agency by competitive bidding

process. Though, private sector won‟t be

allowed entailed as a revenue share

stakeholder.

NEED FOR EPC

• Guaranteed Price

• Guaranteed Timeline for Completion

• Specified Level of Performance

• Single Point of Responsibility

• Post-Commissioning Services

• Flexibility and Certainty

• Higher Supervision and Control

An arrangement between the public and

private sectors with clear agreement for

delivery of public infrastructure and/or

public services, revenue and risk sharing.

BENEFITS

• Speedy, Efficient and Cost-effective

delivery of Projects

• Higher Performance Incentives

• Better Value of Money

• Competition and Greater Construction

Capacity

• Higher Accountability

• Better Risk Allocation

• Government Support

Source: http://ecurrentaffairs.in/blog/special-article-on-epc-mode-vs-ppp-mode-for-national-highways/

http://ecurrentaffairs.in/blog/special-article-on-epc-mode-vs-ppp-mode-for-national-highways/
























Contracting Options Types of works contract

Lumsum / Measurement Contracts


Lumpsum Contracts : As the name indicates, the contractor undertakes to carry out the

work to completion for a lump sum price.

The complete, full detail and exact scope of work required to be done under the

lumpsum contract is laid down by way of drawing and specification incorporated into the

tender documents. Recording of detailed measurement at site is not necessary.

Interim payments are made on the basis of assessment of the progress of work actually

done i.e., mile stones achieved.

Type of Lumpsum Contracts:

Design & Built contract

Part Design & Built and

Built only contracts

Contracting Options Types of works contract

Lumsum / Measurement Contracts


Measurement Contracts: In measurement contracts, quantities of

various items involved in the scope of work are stated approximately in

the BOQ contracts. The exact amount payable to contract for running

account bill/final bill is decided only after measurement of each item of

work done at site priced at rates quoted for each item of work.

Types of Measurement contracts:

Item Rate Contract (BOQ): In this type of contract the tenderer is

supplied with BOQ which contains item with approximate quantities.

Percentage rate contract on pre-priced BOQ:

• Who is Financing ?

• Who does most of the Design?

• How complex is the project?

• What are the Performance Requirements?

• Constraints of Cost & Time.

Criteria for Choosing the Form Of Contract ?


BRT & Bus Operations

• Buses

• Infrastructure

• Bus Q Shelters with Passenger Information

System and lighting

• Operation & Maintenance

Typical Projects for UT Systems


Parking Areas

A: Multilevel Parking Projects • Land

• Infrastructure

• Operations and Maintenance

B: On-street & Off-street Parking • Land

• Infrastructure

• Operations and Maintenance



URBAN RAIL TRANSIT

Metro/Mono Rail • Civil Engineering Infrastructure – Underground Tunnel,

Viaducts & Associated Buildings • Station Buildings with all Services • Track Infrastructure • Traction Infrastructure • Signaling & telecommunications • Air conditioning and Ventilation –(Generally for

Underground Systems.)



Procurement of Goods


SYSTEMS OF PROCUREMENT

International Competitive Bidding (ICB)

Open Tender (without Pre-qualification)

Open Tender (with Pre-qualification)

Limited Tender

Single Tender

Cash Purchase

Registration of Suppliers

Procurement of Goods


SYSTEMS OF PROCUREMENT

Single Tender

Adopted for Proprietary Items

To avoid delays in an emergency

Cash Purchase/Petty Purchase

Suitable for Small Value

Standard Specifications

Off the Shelf availability

Cash Purchase Procedures

• Market Survey

• Selection of Firms

• Quotation/Performa Invoice –At least three

GLOBAL PROCUREMENT (ICB)

FUNDING AGENCIES REQUIREMENTS

INADEQUATE DOMESTIC PARTIES

HIGHER TECHNOLOGY IMPORT

CONTRACT ADMINISTRATION

Objectives Ensure Project Completion

On Time, Quality, Minimum cost Without any Disputes Manage Changes in Scope

by

S. K. Manglik



Elements to Control & Plan

Project Planning

Time Control

Change control

Cost control

Compliance of laws, Regulations, Policies

Enforcement of Terms of Contract

by

S. K. Manglik



Establish Employer’s Organization (Within the framework of the Employer’s Delegation & Requirements)

Employer (Employer)

The Engineer

Specialists

Supervisors

Engineer’s Role

Supervision & Administering the Contract

Quasi Judicial Role

by

S. K. Manglik



SYSTEMS & PROCEDURES

Monitoring

Ordering procedure

Payment procedure

Resource management

MIS

Change

Variations

Deviations

by

S. K. Manglik


Case Example

Background

In a Standing Committee Meeting of an urban local

body held on 25th January 2015, based on advise of a

city engineer, a decision was taken to develop 2 urban

roads.

The City Engineer is advised to implement the project

immediately and accordingly a Notice Inviting Tender

(NIT) is to be issued by him on 30th January 2015

41

• What are the issues in this entire process ?

Problems and Issues

42

• The Standing Committee took a decision on implementation of

the project without conducting a Feasibility Study/ DPR and

neither advised the City Engineer to get a DPR/ Feasibility Study

conducted

• The Project Implementation Options were not deliberated upon.

The project could be implemented on a PPP basis or through

funding support from other Government agencies

• If the city does not have internal resources/ capacity to

conceptualize/ structure the project, external assistance from

advisors/ consultants should have been taken before issuing

the NIT.

Notice Inviting Tender Given below is a tender notice that appeared in the newspapers. Read the tender

notice and list out all the lacunae that you find

Government of ………………/

Government of ……………..Urban Development Trust

…………………………Municipality

Tender Notice No:8/ ____________/__________/12-13

Dated:30-1-2012

The Municipal Commissioner,………………… Municipality, invitees sealed tenders

from interested bidders for “Providing Street lighting in the unserved areas in

Package-A: Road No ……to……. Of Sector …… and

Package-B: Road No ……to……. Of Sector ……”

Estimated Contract value of work is (a) Rs 255.55 lakhs (b) Rs 154.85 lakhs. Last

Date for receipt of tenders including EMD is before 3.00Pm on (a) 21-01-2013 (b)

21-01-2013.

Documents can be purchased from the Municipal Commissioner ,

…………….Municipality Ph.No……………..,Fax No…………..by remitting a D.D. or

Municipal Challan for Rs 22,000/- before 5.00pm on (a) 16-01-2013 (b) 16-01-2013.

Other details regarding eligibility etc. are in the tender documents.

Sd/-

(City Engineer,……….)

43

Lacunae in the NIT

Following are the lacunae for the above Tender Notice

Reference of website for downloading the detailed tender notice not given

Eligibility/Qualification of bidders not mentioned

Bidders are eligible to apply for individual packages or not

Eligibility in terms of joint venture and consortium details not mentioned

EMD amount not mentioned

Pre-bid meeting and contact person to be contacted

Application sale start dates

Qualification Criteria in terms of technical and finance

Is the Cost of tender document of Rs 22,000/- is for Package (A) or both

packages

44

Case Studies

Case Studies

Concessionaire : L&T

Cumulative Length: 71.16 km

Project Cost: Rs 12132 Cr.

Govt. Grant: Rs 1458 Cr.

Concession Period: 35 years (with extension for 25 years)

Govt. owns “Golden Share” in SPV- one representative on Board with

affirmative powers

Real Estate Development at:

3 Depots : Total cumulative area- 11.61 Lakhs sqm.

25 Stations: Total cumulative area- 5.57 Lakhs sqm.

Automatic Annual Fare Revision linked with WPI

Revenue Share with Govt: (Ceiling 10%)

Period Revenue Share (% of realized revenue-net of any tax)

1st to 21st year 0.5%

22nd to 23rd year 1%

23rd onward 1.5%

Hyderabad Metro

Shareholders in Concessionaire

Company:

IL&FS Rail- 48%

ITNL- 26%

DLF- 26%

Based on DBFO model

Total Concession Period: 99 years

Schedule and fare integrated with DMRC

Modalities of Implementation of Gurgaon Metro

Bus Terminus Developed on PPP

No Name of

Project

Project

Area Components

Mode of

Development Remarks

1

Ludhiana

Bus

Terminal,

Punjabi

8 acre

(Rs 15

Cr- 2001)

35 bus bays, 100

ideal parking's

Passenger amenities

Limited

Commercial

Adda Fee to PSP

BOT Mode

• Concession Period was

bidding parameter

• BOQ was fixed

• Sources of Revenue were

limited.

2

Manali Bus

Terminal,

Himachal

Pradesh

4 acre

(Rs 100

Cr-2012)

• 35 bus bays

• 30 idle paring

• Local bus bays

• 426 MLCP

• passenger

concourse

• STU office space

DBFOT

Mode

• ACF was the bidding

parameter

• Difficult terrain for work

• Enormous potential for

commercial development

• MLCP & New Bus Stand

was the need of the town.

3

Zirakpur

Bus Stand ,

Punjab

1 acre

(Rs 4 Cr)

• Transit bus stand

• Bus Lay bus &

Parking

(EPC/ Cash

Contract)

• Scale is small

• Limited Revenue Sources

• Further to be Converted

in O & M contract

Case Study – Ahmedabad, BRTS

SPV contracts and monitors

Buses procured by operator and operating on gross cost +

incentives basis

Minimum guaranteed kms committed by SPV

SPV has financial as well as manpower support from MC

Fare revision linked with change in fuel price & WPI, periodic revision

on 1st April of every year

Cost/km revision wrt change in fuel & WPI

Incentives/penalties linked with pre-defined performance parameters

Change in schedule, fleet size at the discretion of SPV

System sustainability: breaking even

Case Study – Ahmedabad, BRTS

Intelligent Transit Management System (ITMS) –

Conceptual Overview of AJL ITMS

MAKE IN INDIA

DMRC’S CONTRACT CONDITIONS

52

Rolling Stock Procurement by Delhi Metro- an apt

example of ‘Make in India’

Tender for procurement of 486 Standard Gauge cars (RS 10) for Line 7 & Line 8 of Phase-III of Delhi Metro.

Tender was finalized based on International Competitive Bidding (ICB) and awarded to Hyundai Rotem (a Korean Firm).

Maximum no of cars (6 cars in 1 train set) that can be manufactured in off-shore factory outside India is 120.

The balance 366 cars shall have to be manufactured in India.

To achieve the above condition, the contractor is required to establish facilities either independently or with an Indian partner.

Rolling Stock Procurement by Delhi Metro-

an apt example of ‘Make in India’

DMRC has also identified the spares that shall be indigenized and sourced only from India. In case of any deviations in this regard, there are stiff conditions/ penalties.

Conditions similar to the above were incorporated while procuring the Rolling Stock for Phase-I & Phase-II of Delhi Metro and for other metros like Chennai, Cochin etc.

Overall, 1,134 cars out of 1,234 cars procured by DMRC for Phase-I & Phase-II of DMRC have been manufactured indigenously.

For Phase-III of DMRC, more than 85% of the rolling stock required would be manufactured indigenously.



As a result of the above steps taken by DMRC, the following rolling stock manufacturing facilities have come up in India:

BEML .

Bombardier India.

Alstom India.

A number of ancillary units have also been set up.

This results not only in competitive price for future procurements for metros in India, but also leads to generation of jobs and taxes - a true accomplishment of MAKE IN INDIA.

COMPREHENSIVE MOBILITY PLANNING

CMP is a transport sector master plan-cum-

investment program document to meet the mobility

concerns arising from the population and business growth of the study area.

Topographical & Geotechnical Survey

Topographical survey: Investigation about the ground

details including type of buildings, river, utilities, trees

etc

Geo-Technical Survey:

Soil Investigation – to design the type of foundation i.e.,

pile or open foundation?

Water level measurement – do-

Rock investigation, &

Instruction to Tenders (ITC) It provides information about the following:

Project,

Scope of Work

Source of Funding

Conditions if any for manufacturing in India,

Quality Outline, Safety Outline,

Milestone payment schedule,

Sub-Contracting

Tender validity, Guarantee, Insurance,

Tender Opening, Evaluation, Award, Signing of contract agreement etc

Employer’s Requirements

General :

Design Submission programme, Design process,

Preliminary Design, Final Design,

Availability of source code, Tests,

Unit Exchange spares, Consumables, Training,

Access to Site, Transportation to site, Operations manual, progress photographs etc

Technical: Design and performance requirements, Bogies, Train

control Management system, Heating, Ventilation and air-conditioning, Communication systems, Inspection, Tests & Trials, Interface between RS and S&T contractors etc

Detailed Engineering Layout planning, Inventory taking on site

Design of pipe layout and instrumentation

Calculation of material requirements and technical specifications

Definition of interfaces

Technical description of the processes

Quality assurance and quality control

Monitoring of time schedules

Cost control

Supervision of construction and installation work

Commissioning of plant components

Supervision of commissioning

Technical support for production / Commissioning, Trial runs etc

Process optimization

Documentation

Types of Contract Item Rate Contract (BOQ):

In this type of contract the tenderer is supplied with BOQ which

contains item with approximate quantities.

The tenderer quotes rates for each item of work, to be measured

in detail before payment.

The quantities given in the BOQ are stated to be approximate

and variation is to be handled as per contract condition.

Percentage rate contract on pre-priced BOQ:

The tenderer quotes a % above/below against the total amount in the

price priced BOQ containing items with approximate quantities and rates

as per DSR.

For NDSR items, estimates are prepared based on the LAR.

Amounts payable under RA bills and final bills are decided on the basis

of measurement of work done priced at rates given in pre-priced BOQ,

adjusted by the quoted percentage.

Introduction and Objective of Study

Project Need and Justification, Project Area Characteristics

Existing Situation and Anticipated Demand

Options Considered and Comparison of Feasible Options - Preliminary technical & financial

assessment

Conclusions and Recommendations- Gives a GO/No GO

Introduction and other elements same as Pre-feasibility Report

Definition, Scope and, Purpose

Technical Specifications- Scope, Features of the project, location, broad alignment

Examination of the Critical Risks and Problems of the Project

Broad estimation of Financial and Economic returns from the project

Evaluation and Conclusion- Gives Recommendations - is the project technical and

financially feasible and does it warrant a DPR to be made

Introduction and other elements same as Feasibility Report

Existing Situation - Traffic and Transportation Characteristics - Issues and Policy

Project Details - Detailed Design and drawings of Project components - Technical

Specification – Detailed Project Cost and BoQ

Social and Environmental Impacts

Project Implementation Framework - Project Institutional Framework

Project Financial Structuring and Phasing - Project O&M Framework and Planning

Project Financing - Financial Viability & Sustainability -

Project Benefits Assessment (Social Cost-Benefit Assessment) - Risk Management

Framework

Conclusion - Detailed Design Drawing and Technical Specification ; Cost and Revenue

Estimates

Defining Feasibility Report and DPR

63

Pre-

Feasibility

Report

Detailed

Project Report

Feasibility

Report

Procurement

As per the Procurement Bill 2012 of Indian Government,

„„procurement‟‟ or “public procurement” means the acquisition of

works, goods or services by a procuring entity, and includes all

stages of the process of acquisition, by purchase, lease, licence or

otherwise, of works, goods or services, beginning with the process

for determining the need for such acquisition and ending with

completion and expiry of the procurement contract or framework

agreement, but does not include any acquisition without

consideration, and “procure” or “procured” shall be construed

accordingly.

64

Procurement

As per the Procurement Bill 2012:

Bill apply to Ministry or Department of the central Government,

any Central Public Sector Undertaking (50%), or authority or

society or trust or autonomous body (by whatever name called)

established or constituted under an Act of Parliament or a body

owned or controlled by the Central Government.

Bill shall not apply to procurements, which are less than INR 50

lakhs, emergency procurements made for disaster management,

and procurement for the purpose of national security.

65 States Government should follow their own acts and

regulations for procurement of good and services

PRE-QUALIFICTION CRITERIA

Working Capital should be more than AT/7

Annual Turnover = Value of work to be one in a year (Estimated

Value/Completion Time)

Turnover = Annual Turnover X 80%

Work Experience of similar works

Value of one work =>80% of the estimated value

Value of two works = 50% each of estimated value

Value of three works = 40% each of estimated value

66

MAKE IN INDIA

DMRC’S CONTRACT CONDITIONS

67

Rolling Stock Procurement by Delhi Metro- an apt

example of ‘Make in India’

Tender for procurement of 486 Standard Gauge cars (RS 10) for Line 7 & Line 8 of Phase-III of Delhi Metro.

Tender done on International Competitive Bidding and awarded to Hyundai Rotem.

Maximum no of cars (6 cars in 1 train set) that can be manufactured in off-shore factory outside India is 120.

The balance 366 cars shall have to be manufactured in India.

To achieve the above condition, the contractor is required to establish facilities either independently or with an Indian partner.



DMRC has also identified the spares that shall be indigenized and sourced only from India. In case of any deviations in this regard, there are stiff conditions/ penalties.

Conditions similar to the above were incorporated while procuring the Rolling Stock for Phase-I & Phase-II of Delhi Metro and for other metros like Chennai, Cochin etc.

Overall, 1,134 cars out of 1,234 cars procured by DMRC for Phase-I & Phase-II of DMRC have been manufactured indigenously.

For Phase-III of DMRC, more than 85% of the rolling stock required would be manufactured indigenously.



As a result of the above steps taken by DMRC, the following rolling stock manufacturing facilities have come up in India:

BEML .

Bombardier India.

Alstom India.

A number of ancillary units have also been set up.

This results not only in competitive price for future procurements for metros in India, but also leads to generation of jobs and taxes - a true accomplishment of MAKE IN INDIA.

Product Life Cycle

The period of time over which an item is developed, brought to market and eventually removed from the market.

First, the idea for a product undergoes research and development.

If the idea is determined to be feasible and potentially profitable, the product will be produced, marketed and rolled out.

Assuming the product becomes successful, its production will grow until the product becomes widely available.

Eventually, demand for the product will decline and it will become obsolete.