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International Procurement - Learn International Procurement Online
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Purch-lympics Entry #5 - Round #3

 

Mukut Roy
Deputy General Manager (Contracts), Ranchi,India

Purch-lympics - Online Competition For Purchasing Professionals "Project Management Consultancy was awarded to MECON Ltd in 1988 for Modernization of Durgapur Steel Plant (DSP) in India to increase its capacity from 1.25 MT/Year to 2.50MT/Year. The scope of Modernization included supply and installation of Blast Furnace and Sinter Plant units along with other units. Total Modernization was to be completed within 40 months from September, 1988 and the packages of Blast Furnace and Sinter Plant were ordered on a Consortium with Tyazpromexport(TPE) of USSR as the leader. The other members of the consortium were Birla Technical Services (BTS) and Dodsal Engineering both from India. Bulk of imported supplies were in the scope of TPE. Everything was moving as per schedule including the manufacturing of imported equipments in USSR.

Suddenly, due to disintegration of USSR in December, 1991, USSR was split up into many countries including Ukraine where imported equipments of TPE were getting ready to be shipped to India. Disintegration had made it impossible for TPE to supply those manufactured equipments to India. The main problem was that there was no other foreign supplier who could meet the specification as well as the schedule. At that juncture, the undersigned, being Senior Manager(Contracts) of MECON posted at Durgapur, persuaded Higher Management of DSP to amend the consortium contract by converting all imported supplies under the scope of TPE to be converted to indigenous supplies under the scope of BTS. With the assurance of technical and commercial help from MECON and financing from DSP, BTS finally agreed to take the responsibility.

Total Modernization project was rescheduled with the help of MS Project. MECON together with DSP and TPE helped BTS to select vendor from the approved list of DSP/MECON. Once the partied were selected, the total team of MECON, DSP & TPE assisted BTS in engineering coordination, order placement and monitoring the manufacturing activities. Whole work was done on war footing resulting in minimization of cost overrun to 20% and time overrun to six months.

Under aforesaid situation it can be concluded as satisfactory completion of project."
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