ONGC eases financial criteria in tenders to accommodate US firms

To accommodate US firms in its procurement tenders, Oil & Natural Gas Corp (ONGC) will allow bidders to submit parent firm’s consolidated accounts for assessing their financial capability.

- AMITAV RANJAN

However, the turnover period for evaluation is being extended to last three financial years from existing last two financial years.

‘This will allowa subsidiary to use the financial strength of its parent company in bidding for ONGC tenders. In many instances, the parent entity does not undertake operational activities itself and hence, the subordinate does not demonstrate a significant turnover on a standalone basis.