• PAGE ONE
• INDEX
• HOME

Fourth cellular licences -- DoT no to extend deadline for bids

G. Rambabu

NEW DELHI, June 24

THE Department of Telecommunications (DoT) has refused to extend the last date of submission of pre-qualification bids for the fourth cellular licences in the four metros and 17 circles, from June 29, as demanded by many of the ``prospective'' bidders.

According to sources, with the last date for sale of the tender document closing on Friday, many cellular operators had sought more time for submission of the bids for pre-qualification, first stage financial bids, and earnest money bank guarantee.

However, the DoT has ruled it out saying that it would lead to unnecessary delays in rolling out the services. It wants to stick to its deadline of announcing the list of successful bidders by July 19.

The department noted that the bidders had already been granted enough time. In fact, it was at their insistance that it had advanced the issue of comprehensive clarifications regarding the tender document and the draft licences agreement document to June 6.

The earlier schedule had fixed June 12 for clarifications and June 18 for the issue of draft licence agreement document.

Meanwhile, they said that there has been tremendous response from the existing cellular operators, with most of them picking up the tender documents before the last date, which fell on Friday.

Many of the existing cellular operators including Reliance, Bharti, BPL, Modi, Escorts and the Birla Tata AT&T combine have picked up the application forms, which cost Rs 50,000. The high-price has been fixed to ensure that only the really serious bidder s apply, they said.

If all goes well, then the pre-qualified bidders will be announced by July 9 and the three stage informed ascending bidding process will put into motion.

The first stage financial bids will be opened on July 11, and the list of successful bidders announced the same day. The last date for submission of second stage financial bids is July 16, on which day the second short list will be announced.

Then finally the third stage financial bids close on July 19, on which day, the final short list will be declared. They will also be issued demand letter for payment of quoted entry fee.

The successful bidders are to deposit 20 per cent of the bid amount the day after being declared successful after issue of demand letter. The payment of the balance 80 per cent is to be done by July 30.

The submission of financial and performance bank guarantees by successful bidders has to be done by 31 August, 2001 and licence agreements will be signed by the date specified in the letters of intent, they said.