Constituent policy

Policy overhaul, MES sharply raises joint venture limit in construction works: The Tribune India


Tribune press service

Vijay Mohan

Chandigarh, April 9

The Military Engineering Service (MES) has revised its policy on joint ventures in the execution of civil works. Under the new guidelines, joint ventures would only be allowed for works estimated to cost more than Rs 100 crore.

Until now, joint ventures were allowed for specialized services estimated to cost more than Rs 20 crore and other works above Rs 50 crore in addition to solar power projects and prefabricated structural works of any value.

The revised policy will be applicable to all tenders for which the end date for submission of tenders is April 13, 2022 and after, according to a statement issued on April 7 by the Chief Engineer Branch at the headquarters of the army.

Among the largest construction and maintenance agencies in India with an annual budget of Rs 13,000 crore, MES is responsible for creating strategic and operational infrastructure across the country for the armed forces such as airfields, ports , residential and office accommodation, specialized facilities, hospitals and workshops.

Composed of a mixed component of military and civilian executives, it is one of the pillars of the engineering corps alongside combat engineering and the organization of border roads.

Given the specificity of the work or to alleviate labor shortages and meet other technical or administrative requirements, certain projects are subcontracted by the MES to commercial companies, which can carry them out as contractors. single entity or in collaboration with an industrial partner.

The policy also recalls that foreign companies will not be allowed to participate in joint ventures. Indian companies with directors of foreign origin and Indian companies with directors of Indian origin but residing abroad or having a foreign nationality may, however, be permitted to form joint ventures subject to the required security clearance.

A joint venture cannot combine more than two companies. The main company must hold at least 60% of the shares of the company while the second company must hold at least 30%, which must be clearly defined, as well as the role, responsibility and scope of work of each business.