**Executive Summary**
This document outlines the revised dredging policy to be followed by major ports, effective April 1, 2007, for a period of three years. It details guidelines for tendering processes, the right of first refusal for Indian companies, and adherence to Central Vigilance Commission guidelines. A key action item is the acknowledgement of receipt of this document.
**Key Points / Main Content**
* **General Dredging Policy:**
* The revised dredging policy guidelines are effective from April 1, 2007, for three years.
* **Tendering Process:**
* Major ports must invite open competitive bids for dredging works.
* Indian companies with Indian flag dredgers, including DCI, have the right of first refusal if their rate is within 10% of the lowest valid offer.
* If multiple Indian flag dredger companies participate, the right of first refusal goes to the one with the lowest rate within 10% of the lowest valid offer.
* Applies to both maintenance and capital dredging works, excluding maintenance dredging of Kolkata Port (separate instructions apply).
* **Transparency and Compliance:**
* Ports must adhere to Central Vigilance Commission guidelines for transparent tender processing.
* Prequalification criteria must be fixed in advance, not overly stringent, exhaustive, and specific to ensure fair competition.
* Prequalification conditions should be clearly specified in the bid documents.
* Detailed instructions regarding the above will be issued separately.
* **Government Rights and Guidelines:**
* The Government of India, through the Department of Shipping, reserves the right to assign dredging contracts to DCI on nomination in the public interest.
* Guidelines issued by DG(Shipping), Mumbai, regarding the Merchant Shipping Act, shall be applicable.
**Impact Analysis**
**Stakeholder: All Major Ports**
* **Impact:** These ports must revise their dredging tendering and contracting processes to comply with the new policy guidelines.
* **Action Required:** Review and implement the revised dredging policy, ensuring adherence to tendering guidelines and transparency requirements.
**Stakeholder: Dredging Corporation of India (DCI)**
* **Impact:** DCI retains preferential treatment through the right of first refusal for dredging contracts.
* **Action Required:** DCI should assess its bidding strategies in light of the right of first refusal provision and monitor upcoming tenders.
**Stakeholder: Indian Companies Owning Indian Flag Dredgers**
* **Impact:** These companies benefit from the right of first refusal in dredging tenders.
* **Action Required:** Actively participate in dredging tenders, emphasizing competitive rates, and stay updated on policy changes.
Key Entities Referenced
Ministry of Shipping, Road Transport & Highways: The primary issuing authority for the dredging policy.
Dredging policy: The subject of the document, pertaining to dredging activities in major ports.
All Major Ports: Entities to which the policy guidelines apply.
Dredging Corporation of India (DCI): An Indian company with preferential rights under the policy.
Merchant Shipping Act: Legal framework referenced in the guidelines.
Government of India
Ministry of Shipping, Road Transport & Highways
Department of Shipping
(Ports Wing)
No: PO-28015/8/2000-DRG Delhi dated the 12th February, 2007
To
The Chairman,
All Major Ports
CMD, DCI
Sub: Dredging policy to be followed by major ports w.e.f . 1.4. 2007 for a period 3 years- reg.
Sir,
I am directed to refer to this Ministry’s letter No. PO-28015/8/2000-DRG dated 17.2.2004 regarding the dredging policy to
be followed by major ports w.e.f. 1.4.2007 for the period of 3 years.
2. The Department has since reviewed the existing policy and the revised policy guidelines shall be as under:-
(i) All major ports shall invite open competitive bids for dredging works and Indian companies owing Indian flag dredgers,
including Dredging Corporation of India (DCI) shall have the right of first refusal if the rate is within 10% of the lowest valid
offer. This would apply to both maintenance and capital dredging works with sole exception of the maintenance dredging
requirement of Kolkata Port for which separate instructions shall apply.
(ii) If more than one company owing Indian flag dredger participates in the tender, the right of first refusal will go to that Indian
company which has quoted the lowest rate and is within 10% of the lowest valid offer.
(iii) All major ports may strictly adhere to the guidelines issued by the Central Vigilance Commission from time to time for
processing the tenders in a transparent manner. Ports may ensure that a prequalification criteria is fixed in advance and
should not be very stringent to restrict entry of certain potential Indian bidders. The prequalification conditions should be
exhaustive, yet specific. The prescribed conditions should be clearly specified in the bid documents to ensure fair
competition and transparency. Detailed instructions in this regard will be issued separately.
(iv) The Government of India through Department of Shipping reserves the right to assign, in public interest, any contract for
dredging work in any of the major ports to DCI on nomination.
(v) Guidelines issued by DG(Shipping), Mumbai from time to time in terms of the relevant provisions of Merchant Shipping Act
shall be applicable.
4. Kindly acknowledge receipt.
Yours faithfully,
Sd/-
(Rajeev Kumar)
Deputy Secretary to the Government of India