The Oman-India fertiliser project is going to make parliamentary history of sorts. It has attracted an unprecedented number of questions in Parliament for any single project so far.
On a rough estimate, fertiliser ministry officials say that during the forthcoming budget session, more than 70 questions are likely to be asked about the controversial project. In fact, one of the questions has been signed by as many as 20 members of Parliament.
This confirms the belief that Krupp Uhde GmbH of Germany has not yet given up on the project which appears to be going the Snamprogetti -Technib way.
Uhde representatives recently met fertiliser minister S S Barnala to express its displeasure over the selection process adopted by the project authorities for picking the `most preferred bidder. It has sought re-evaluation of bids.
Uhde India Ltd managing director Michael Thiemann had even written to Barnala that we are not satisfied with the manner in which the preferred contractor has been selected . Procedures and guidelines provided in tender documents were not followed .
Moreover, loading of the Uhde offer in comparison to deficiencies in the offer of competition is not justified.
Uhde had charged that due to a lot of additions and changes after opening (of bids) and in view of the changed economic conditions like exchange rates and availability of financing package, we would like to recommend a profound reevaluation of the offers provided around two years ago.
The $1.2-billion project is a joint venture between Kribhco, RCF and Oman Oil Company. It will have a capacity to produce 3600 tonnes per day of ammonia and 4400 tonnes per day of urea.
Natural gas will be supplied by an Omani agency, PDO, at 50 cents per million British thermal units with a transportation cost of 27 cents per million BTU with a cost escalation clause.
The natural gas supply agreement will be valid for 25 years.
The offtake agreement between the joint venture company and RCF and Kribhco envisage the guaranteed purchase by the Indian partners at a price linked to the international prices.
