KSS Moves HC to Cancel ONGC’s 1k-cr Contract to Technip Unit
Engineering, procurement and construction contractor KSS Petron has approached the Bombay High Court, seeking to cancel a .` 1,000-crore EPC contract that state-run Oil & Natural Gas Corp has given to the local unit of French engineering company Technip.
In its petition, KSS Petron, formerly KazStory Services Infrastructure India and a subsidiary of Patron India, accused ONGC of favouring Technip KT India Ltd on the contract related to an onshore terminal development. It claimed that the bid documents submitted by the rival company were defective and said ONGC had ignored this while awarding the contract. In its reply to the court, ONGC said the bid given by Technip was nearly .` 43 crore lower than that of KSS Petron. “The issues raised by KSS Petron were merely technical issues which were not genuine to the tender terms and conditions,” ONGC deputy general manager SK Mishra said in an affidavit filed in the court. “Since the tender was to be commissioned and executed within a period of 30 months, it was absolutely necessary that the said contract was commissioned without any further delay,” the affidavit said. KSS Petron, Technip and ONGC didn’t respond to emails seeking comment. Nishit Dhruva, managing partner of MDP Partners, which represents ONGC, confirmed the development but refused to divulge details saying the matter was sub judice. KSS Petron is represented by JSA Advocates & Solicitors while Khaitan & Co represents Technip KT India. On November 29, 2011, ONGC had floated a tender for the EPC contract for the onshore terminal development of S-1 Vashistha Project. It was an open tender under international competitive bidding.