The Hindu Business Line : ONGC told not to award deal

, Mr Justice G.C. Gupta of the Calcutta High Court has barred ONGC from awarding contracts for integrated exploration and development of coal bed methane (CBM) at Jharia, Bokaro and Parbatpur blocks in Jharkhand during the next four weeks.

The $200 million (Rs 900 crore) contract targeted development of CBM projects in these blocks in 54 months.

The court passed the order on Wednesday, observing that since ONGC could not decide in the last eight months, nothing will happen in the next four months.

Parties have been directed to file affidavits, and the matter shall be heard after four weeks on priority basis.

The order came in the wake of a petition filed by the consortium of Gardes Energy Services Inc, Essar Oil and Essar Construction alleging violation of procedures.

ONGC had earlier rejected the Gardes-Essar consortium's bid and favoured the consortium of Mineral Exploration Corporation Ltd, Shivani Oil and Gas Exploration Services Ltd and Express Drilling Services for carrying out the job.

Before seeking justice from the Calcutta High Court, the Essar Group had expressed dissatisfaction over the issue to the Union Ministry of Petroleum and Natural Gas. ONGC floated the tender on June 10, 2005. In a petition before the court, Gardes-Essar consortium alleged that ONGC did not consider its expertise in drilling below 1,200 metres of depth which was critical for development of the blocks and kept raising issues which were far from the scope of the tender.

According to the petitioner, even though it had obliged ONGC by supplying the requisite documents within the due timeframe, its bid was rejected. Denying all the allegations, counsel for ONGC stated that Gardes deliberately did not furnish the required documents of expertise and finance, as it did not have those, whereas the Mineral Exploration consortium furnished all the required documents.