GAIL to empanel consultants for appraisal of power projects

GAIL India Limited has invited bids from domestic bidders under the two-bid system for financial

appraisal and other financial services including bid advisory services for power projects.
8The scope of work will include providing comments on the detailed feasibility report (DFR), particularly the

assumptions and cost estimates, and suggest changes in the DFR. However, the appointed agency will not be

responsible for bringing out the DFR as that will be done by GAIL.
8The appointed consultant will also provide a model for the determination of viability of the project with

suitable flexibilities in phasing capital investment, construction schedule of the project, capacity build up,

return on capital employed based on the determination of cost of capital on standard principle and any other

variable, as suggested by GAIL.
8The consultant will also review the power sector scenario in the project area, work out the sale price of

power per unit, compare it with the present per unit purchase rate of power in the project area.
8In addition, the appointed consultant will also provide an independent view on project viability. The report

of the consultant will include clear cut recommendations to the management for investment decisions along with

recommendations on financial viability and bankability of the project.
8Notably, bankability of the project means whether banks are willing to lend unconditionally based on the

viability and risk involved in the project.