Consulting Engineers Association of India (CEAI) an apex body of consulting engineers in the country which is celebrating it’s diamond jubilee this year in a letter to the Prime Minister Narendra Modi has urged him to revisit the age old existing tendering system in the country based on the Least Cost Selection Method or L1 needed to be changed post haste for consultancy works as well as construction works and procurement of goods.
“For Complex projects like Expressway, Tunnels, Power Plants which require specialized state-of-art-technology, these should be awarded on Quality and cost Based Selection (QCBS) 90:10 basis (Technical Weightage 90% and Financial Weightage 10%). For highly Complex projects, like nuclear power plants, space technology, state-of-art military hardware, Quality-based-Selection should be adopted. No Works, Goods or Consultancy Services should be procured on Least Cost Basis. For all such projects, the Standard Deviation method should be applied to remove abnormally low rates – which is the ill of all problems; “said Mr. Ajay Pradhan, President, CEAI.
“To successfully launch the Atamnirbhar Bharat vision, No work, however complex should be awarded to an International Company; The work should be awarded to a Joint Venture of an Indian Company and an International Company, with the Indian Firm bringing the local knowledge and financial strength to the Consortium, and the international firm, the technical knowhow; In all Consultancy assignments requiring an International company, minimum 40% key staff must be provided by the Indian Company besides all logistics like office facilities, operations, vehicles and local administration.” Said Mr K. K. Kapila, Chairman, Diamond Jubilee Committee of the CEAI.
“The essential Condition for the International Company should be to transfer specialized knowledge and technology to the Indian Partner through limited specialized input; and, The payment to the foreign partner should be linked with Transfer of Technology;” Said Mr. kapila.
“CEAI also urges government to make Amendment in the Constitution to clearly bring out that the Government of India will never resort to any Retrospective Taxation;, Similarly the PPP Agreement must explicitly include that if the Concessionaire is restrained from collecting the toll in Highway projects or a Power Project is foreclosed; they will be compensated on an agreed mechanism contained in the Agreement; For instance, if in a Highway Project, Toll collection is stopped in the 2nd Year, the Concessionaire is to be compensated with certain amount without any ifs and buts; Similarly in the case of a Power Purchase Agreement if it is foreclosed, the Concessionaire will be compensated in a graded manner depending on the time of closure.” “Said Mr. Kapila.
“CEAI has also demanded change in definition of an MSME Company. Currently a Company is registered as an MSME Co., if it has a turnover upto INR 250 Crore (excluding foreign exchange earnings); CEAI requests to increase this threshold to INR 400 Crore (excluding foreign exchange earnings); The Consulting Fraternity is fully committed to make the Nation Self Reliant and firmly believes that the above enumerated recommendations, when adopted, would greatly assist to fast track the concept of Atmanirbhar Bharat in the country. “Mr. Kapila added
