The Hindu Business Line : Private dredging cos oppose new norms

Kochi March 20 Indian private dredging companies have come out against the new dredging policy guidelines that favour public sector Dredging Corporation of India (DCI) in the award of dredging contracts.Highly placed sources in the Indian Dredger Owners' Association pointed out that the earlier practice of assigning dredging works in major ports to Dredging Corporation of India on nomination basis has been practically revived with the enforcement of the new policy.

As per the present policy, private companies would end up spending all their money and time in making preparation to bid for dredging projects and at the end of which they might be told that it has been decided to assign the project to DCI on nomination basis in public interest.

Total unfair

This is totally unfair to domestic companies and it violates the very sanctity of the process of tendering. The other implication of the uncertainty created by the new guideline is that domestic companies would not venture into making any investments in acquiring dredgers because there is no certainty of being awarded the contract even after the process of tendering is completed, the sources added.

Dredging companies also complain that the pre-qualification criteria often adopted for both capital and maintenance-dredging works stipulate the minimum financial turnover of the company. This favours foreign dredging companies since they undertake dredging work both in India and abroad at very high rates. Instead, the quantity of dredging completed and whether the stipulated depths were achieved or not should be the criterion for pre-qualification, the sources said.

The dredger owners association, therefore, requested the Government to reconsider the guidelines laid down in Para 2 (iv) and restore the position that existed in the dredging policy in 2004.