ONGC: Domestic pipe maker limited to 20% of $500 million ONGC project – Times of India


New Delhi: Domestic pipe manufacturers have been capped at only 20% of the $500 million ONGC The state-run explorer extended the contract award date by five days ahead of a mandatory domestic procurement policy for iron and steel products for the project.
ONGC had floated tender for a project identified as PRP-VII to replace 317 km of inter-platform offshore pipeline on September 22 with February 3, 2022 as the project award date. But on October 22, the company extended the award date to January 20, 2022.
Industry sources said the successful bidder can get all the pipes domestically under the original schedule as a two-year exemption from domestically manufactured iron and steel products.DMISP) The policy given to ONGC would have expired on January 29, 2022.
after Ministry of Steel Announced the policy on May 29, 2019, ONGC had sought exemption for the PRP-VII project in 2020 citing “engineering requirement and interface difficulties delaying projects”. Under the DMISP policy, iron and steel pipelines “are to be exclusively manufactured domestically and cannot be imported without the approval of the Ministry of Steel.”
The ministry on January 29, 2020 granted exemption for 80% of required pipes till January 29, 2022, with the caveat that ONGC tests domestic producers by placing development orders for the remaining 20% ​​of pipes by March 31, 2020. The import of this quantity was allowed when the development order failed. ONGC was also advised to set aside the development order from the tender and submit the test results for review to the ministry by June 2020.
However, ONGC did not place the development order and amended the tender to push the date of award to avoid dishonesty and possible legal challenge from Ministry of Steel after the exemption expires on January 2022. There is a possibility of import of pipelines.