The Hindu Business Line : Delhi, Mumbai airports — GoM may call new tender for consultant

WITH a final decision on appointing a financial advisor to the Government on modernisation of Delhi and Mumbai airport caught in a logjam, the empowered Group of Ministers (GoM) is likely to recommend calling for fresh tenders to decide on the matter.

Official sources told Business Line that a final decision on the issue could be taken as early as this week but only after the Union Ministers return to Delhi.

Sources said that the logjam has been created due to a "misunderstanding" and a "minor hitch" in the notice inviting tenders issued for short-listing of the financial consultants.

The language in the notice was such that even though three consultants had been short-listed, the bureaucratic inter-Ministerial group had to go with the lowest bidder, they added.

However, the GoM was of the view that for such a large project the best group should be the one which had the maximum experience rather than deciding on the lowest bidder route.

"The feeling among the group was that not enough weightage was being placed on the expertise of the consultant. In the given circumstances, it may look at re-tendering for the entire process," the sources said.

The four-member GoM consists of Mr Jaswant Singh, the Finance Minister, Mr Rajiv Pratap Rudy, Minister for Civil Aviation, Mr Arun Shourie, Minister for Law, and Mr Arun Shourie, Minister for Disinvestment.

While leading consultancy firms - Ernst and Young, ABN Amro and KPMG - have already been short-listed, the GoM has failed to name the advisor despite holding three meetings.

At the last meeting earlier this month, a senior Cabinet Minister is said to have "expressed his displeasure" at the manner in which a Cabinet decision could not be implemented despite three rounds of meetings being held.

While admitting that the process has been "slightly delayed", the sources maintained that a decision on re-tendering and issuing of fresh tenders could be taken before the winter session of Parliament, which begins on December 2.

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