Patel Engineering Ltd had bid for Dhankuni Kharagpur project with National Highways Authority of India on January 10th 2011.

It said “On opening of the bids the Company was declared the lowest bidder. But, after opening of the bid the company realized that there was an inadvertent error during the estimation of the bid. The company brought this to the attention of NHAI and formally requested for the withdrawal of its bid. Subsequently, the Dhankuni Kharagpur project was reopened within 5 days for bidding.”

An article in Financial Chronicle dated March 9th 2011 states that NHAI has banned Patel Engineering for 5 years for reneging on the awarded contract. But, the company has said that the news is incorrect.

As a matter of fact, subsequent to the abovementioned instance the company have bid for Krishnagiri Tindivaram - BOT (annuity) on February 22, 2011 and Barwadda - Pannaagarh on March 8th 2011 with NHAI. Both the bids have been opened and gives a clear indication that the company has not been banned from participating in NHAI projects.

(Sourced from Equity Bulls)