SC notice to DMRC over train contract

Supreme Court on Wednesday sought response from Delhi Metro Rail Corporation (DMRC) and Hyundai ROTEM on a petition filed by a consortium led by Siemens Aktiengesellschaft against the Delhi Metro's R3,500-crore contract for supply of 81 high-speed trains for its third phase covering the corridors of Mukundpur- Gokulpuri and Janakpuri-Noida.

A Bench headed by Justice BS Chauhan issued notice to Delhi Metro and Hyundai ROTEM after the German major, which had failed to bag the contract for supplying the high-speed trains, raised various allegation against the tender process for procurement of trains for its third phase of 110 kilometre. It argued the tender was vitiated since DMRC tweaked the terms and conditions at the last minute to favour Hyundai ROTEM.

The apex court, posting the matter for further hearing in July, said if any action is taken by DMRC in awarding the contract, the same shall be subject to final outcome of the SLP. †

Challenging the award of contract to Hyundai ROTEM, senior counsel UU Lalit, representing Siemens, argued that DMRC had in March last year invited tenders in international competitive bidding for the design, manufacture and commissioning of 486 Nos. standard gauge cars meant for 81 trains.

On September 18, 2012, six bidders, including Siemens, qualified during evaluation of technical bids, said the petition, adding on opening of the price bids in February this year, Siemens was found to be the lowest bidder at R3,625.27 crore, followed by Bombardier Consortium (L-2) at R4,242.27 crore and that of Hyundai Rotem (L-3) was at R4,290.57 crore, SLP stated.

"However, the scenario, undergoes a dramatic change, wherein, after loading, based on energy values furnished by the bidders, disclosed for the first time only with opening of the price bid, in as much as respondent 2 (Hyundai ROTEM), who was L-3, becomes L-1, while petitioner, who was L-1 becomes L-4," Siemens said.

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