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November 19, 1998

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DoE moots consortium to make international bids

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The Department of Electronics has mooted a consortium approach for public-sector undertakings in the electronics sector for project bidding and execution.

The move would help club together expertise available with various companies under the DoE so as to enable them to effectively compete with foreign players.

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"The organisations under DoE have decided to work together as it would help complement our strengths while bidding and executing projects," official sources in CMC Limited said.

Amongst the major PSUs under the DoE that would bid and execute projects collectively, are the Electronics Corporation of India Limited, CMC Limited, Electronics Research and Development Centre and the Centre for Development of Advanced Computing.

Such a joint approach to bidding and execution of mega projects was discussed at the meeting between the heads of government owned companies and the DoE recently.

Elaborating on the possibilities of such cooperation, officials pointed out that two or more of the companies, for instance, could collectively bid for supply of software solutions for efficient power grid management.

They could complement their services for providing a range of solutions. For example, C-DAC with expertise in software could combine with CMC to bid for and execute a sector-specific management solution.

It would also provide the technical expertise and experience for biding for World Bank-aided projects.

Under the World Bank stipulations, only firms having the experience in installation of 5,000 MW of power generation and an annual turnover of $25 million can bid for installing computer software solutions for efficient power grid management.

This World Bank clause disqualifies organisations like C-DAC that have the expertise and can provide the service at half the price.

"Following the meeting, DoE has mooted a joint approach to bidding for projects. The approach would enable companies to qualify for bidding for multi-billion dollar projects," said an official in C-DAC.

- Compiled from the Indian media

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