Must revisit standard L1 tendering system: IRF


Worldwide Street Federation on Monday stated it has urged the federal government to revisit the age-old current tendering system primarily based on the least value choice methodology or L1, stating that it will not be the most-appropriate and appropriate methodology of awarding a contract for varied infrastructure initiatives. “In India complicated initiatives like expressways, tunnels, energy crops which require world state-of-the-art expertise want be awarded on high quality and cost-based choice (QCBS) as an alternative of least value procurement methodology for works, items and consultancy. It ought to be at lowest workable charges,” Okay Okay Kapila, President Emeritus, Worldwide Street Federation and former Chairman, Consulting Engineers Affiliation (CEAI) stated in a letter to Prime Minister Narendra Modi.

“Consultancy assignments for typical excessive finish infrastructure initiatives should be procured at QCBS 90:10 foundation (technical weightage 90 per cent and monetary weightage 10 per cent) and procurement for all different consultancy assignments should at all times be on QCBS 80:20 foundation (technical weightage 80 per cent and monetary weightage 20 per cent),” Kapila stated.

For all such initiatives, the Normal Deviation methodology ought to be utilized to take away abnormally low charges – which is the “unwell of all issues”, the letter stated.

For Atmanirbhar Bharat imaginative and prescient the federal government ought to award any undertaking, nonetheless complicated it might be to a Joint Enterprise of an Indian Firm and a world firm, with the Indian agency bringing the native data and monetary energy to the consortium, and the worldwide agency, the technical knowhow.

The important situation for the worldwide firm ought to be to switch specialised data/expertise to the Indian accomplice by way of restricted specialised enter and the fee to the overseas accomplice ought to be linked with switch of expertise.

“The federal government ought to redefine the definition of an organization in India which is presently being misused by the worldwide firms and a significant hindrance within the nation turning into ‘Atmanirbhar’,” the letter stated.

Presently any firm presently registered in India and paying taxes right here is taken into account an Indian firm.

“As introduced out earlier the definition of an Indian firm should essentially be an organization registered in India with no less than 60 per cent possession by Indian nationals and 40 per cent key workers to be offered by the Indian accomplice in addition to all logistics like workplace amenities, operations, automobiles and native administration,” Kapila stated.

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