Off-track snag hits METRO WORKS

Off-track snag hits METRO WORKS
Disagreement Over Work Tender, BMRC Claims Bid Too High
R Krishnakumar | TNN

Bangalore: The face-off over a work tender — between the Bangalore Metro Rail Corporation (BMRC) and a potential bid winner — is doubling up as a speed-breaker for the city’s showpiece rail network. While a consortium led by Bharat Earth Movers Ltd (BEML) has quoted a “high’’ price for work on Namma Metro’s rolling stock (rail coaches), BMRC is unrelenting, claiming that a high-priced work order could translate into higher fares for the commuter.
The consortium, that also has Mitsubishi and Rotem as partners, has made the lowest bid for the rolling stock tender. According to BMRC sources, the bid’s worth is about 17% more than what BEML had quoted for Delhi Metro’s rolling stock contract. BEML had, in late 2007, bagged a tender worth more than Rs 1,000 crore to manufacture and supply Metro cars for the Delhi Metro Rail Corporation (DMRC).
When countered with the possibilities of a normal rise in costs over a period of one year, a senior BMRC official maintained that the 17% difference was arrived at after taking into consideration the general cost escalation. “This has come in as a surprise, considering that BEML has a base in Bangalore and already has benefits like tax concessions. Since the rolling stocks cover about one-fifth of the total project cost, any increase in their costs will hit the commuter, who’ll have to pay higher fares,’’ says the official.
BMRC is expected to take the lowest bid forward but the officials are all set to commence negotiations with BEML — on December 10 — to push for a bid that’s worth at least 10% less. The negotiation will be held around the point that if the quoted value doesn’t come down, the commuter will feel the heat, according to the officials.
“The idea is to offer a comfortable, economical ride for the citizens. That purpose will be beaten if a rise in the rolling stock cost leads to high passenger fares,’’ says the official. BEML officials who were reached for their take on the contract issue, refused to speak.
THE BIDDERS
Alstom Projects, Siemens AG and Bombardier Transportation GmbH, along with BEML-led consortium, were four original bidders for rolling stock works. Later, the race narrowed down between Alstom and BEML-led consortium.
The contract is to design, manufacture, supply, test and commission 150 cars (50 train sets with three cars each) for first phase of Namma Metro, apart from imparting training on operation and maintenance to personnel. The three-car train can accommodate about 1,000 passengers. Sources say the work is worth more than Rs 1,000 crore.
TENDER HIT
BEML-led consortium makes lowest bid for rolling stock works BMRC claims the bid is higher than BEML’s bid for Delhi Metro High bid will lead to higher fares, says BMRC Talks to commence on Wednesday to push for a lower bid The contract is for 150 cars for Namma Metro phase 1