ABSTRACT

Information Technology – Appointment of a World  class International consultant for Positioning   in  Chennai / Tamil Nadu as the most preferred state for IT investments – Approval for reframing and refloating  the tender -  Orders  Issued.

INFORMATION TECHNOLOGY DEPARTMENT

G.O.(D) No.2
Dated:03.02.2004

Read:

1. 1. G.O.(D) No.11 Information Technology Department dated 19.12.2002
2. 2. From the Managing Director, ELCOT Lr. No. ELCOT / GMD / DOC / 423 / 02, dated 10.10.2003 and   dated 19.11.2003

-----

ORDER:

In order to attract International Companies and Multi- National Companies (MNC) to locate their offices in Tamil Nadu, it was decided that a World Class International Consultant to do a SWOT analysis of the State is needed to compare it with the competition in the sector with other states and offer suggestions for gap-filling required between expectations and ground realities so that large MNCs and world IT companies select Chennai for their developmental investment. For this purpose orders were issued in the G.O. first read above, sanctioning the appointment of an International Consultant for positioning Chennai / Tamil Nadu as the most preferred State for IT investment. Sanction was also accorded for  floating of a tender through ELCOT for the appointment of the International Consultant.

2. The Managing Director, ELCOT has stated that a tender was floated by ELCOT on 21.7.2003 and that tender documents were received.  It was found that none of the Companies fulfilled the conditions stipulated in the tender. Therefore MD, ELCOT has proposed to cancel the tender and to call for re-tender. The Managing Director, ELCOT has  therefore sent  proposal indicating the scope of work  to be undertaken by the world class International Consultant to be appointed and also the revised tender conditions to be stipulated.  The Managing Director, ELCOT has also requested for sanction of Rs. 50 lakhs as advance and to allow ELCOT to claim service charges of 5% for the tender.

3. The Government after careful examination of the proposal of MD, ELCOT and the  re-tender conditions stipulated by ELCOT approve the same as mentioned  in the Annexure to this  order.  Sanction  is accorded for  incurring an   expenditure not  exceeding  Rs. 50 lakhs (Rupees Fifty lakhs only) as advance to meet the expenditure in connection with calling for re-tender for the appointment of world class Consultant.  The Government also permit the MD, ELCOT to claim service charge of 5% for the tender.  The Managing Director, ELCOT is requested to remit the balance  amount if any  after finalising the re-tender processes into  the Government account.

4.  The  expenditure sanctioned in para 3 above shall be debited to the following head of account:

“2852 – Industries  07 – Telecommunication and Electronic Industries – 800 Other Expenditure - II State Plan – JB Grants to Electronic Corporation of Tamil Nadu Limited for Improving Information Technology  09- Grants in aid –03 Grants for specific schemes (DPC  2852-07-800-JB0931)"

5. The Section Officer, Industries (Bills) department  is requested to claim, and disburse the  amount sanctioned in para 3 above to the Managing Director, ELCOT, Chennai -35 by means of cheque with proper acknowledgement.

7.  This order issues with the concurrence of the Finance Department vide its u.o.No.28 / DS (BN) / 04, dated 29.01.2004.

(BY ORDER OF THE GOVERNOR)

VIVEK HARINARAIN
SECRETARY TO GOVERNMENT

To

The Managing Director,

ELCOT,  No.692, Anna Salai, Nandanam, Chennai- 600 035.

The Industries (Bills) Department, Chennai- 600 009.

The Accountant General  (Audit),  Chennai-18

The Principal Accountant General, (Accounts & Entitlements),  Chennai-18

The Accountant General, Chennai-9

The Pay and Accounts Officer,  Secretariat, Chennai-9

Copy to:

The Finance  Department, Chennai-9
PS to Secretary IT Department, Chennai-9
PA to Minister (L,IT&E), Chennai-9
Sf/Sc

/Forwarded / By order/

Under Secretary to Government

Annexure

(Annexure to G.O.(D) No.2,  Information Technology Department, dated : 03.02.2004

The scope of work to be undertaken by the World-class  International Consultant to be appointed would be as follows:

i

1. a.    Analysis with Statistics on current trends in Information Technology (IT).
2. b.    Status of IT software and  services industry in India and Tamil Nadu.
3. c.    Existing infrastructure for IT Services  (ITS) and IT Enabled  Services (ITES) in Tamil Nadu.
   d.      Status and availability of skilled man-power in ITS and ITES
   e.      SWOT Analysis on Tamil Nadu   in ITS, ITES, Hardware and Telecom.

ii

1. a.    Advise the Government of Tamil Nadu so as to facilitate the  achievement of CAGR of 70%  in the ITS / ITES / Hardware for a period of 4 years with the given road map.
2. b.      Advise the Government of Tamil Nadu on the marketing  strategies and plans so as to  facilitate a CAGR of 70% in the ITS/ ITES/Hardware over a  period of 4 years.
3. c.      Advise the Government of Tamil Nadu on development of suitable human resources for  the ITS/ITES/Hardware sector  in the next 4 years so as to achieve the CAGR of 70%.
4. d.      To work with the Government of Tamil Nadu to market Chennai to specific large IT/ITES business world wide so as to ensure maximum establishing of business/R&D centers at Chennai.

iii

Identify 20 companies from the Fortune 500 Forbes List (2003), who are looking   for migrating to India for ITS, ITES and Hardware opportunities and advise the Government of Tamil Nadu to catalyse investments from 10 of them to Tamil Nadu in the next 3 years.

iv The tender conditions would be as follows:

a)  The tenderer should be in the business of Knowledge Technology Promotional consultancy for the last five years.

1. b)    The tenderer should have undertaken study for a Government anywhere in the world worth INR Rs.50 Lakhs.

c)  The tenderer should produce proof of Destination of Choice/similar consultancy awarded.

d)  The tenderer should have an office in India.

e)  The average annual turnover of the tenderer in the last three years towards the consultancy charges executed should be Rs.1.5 crores (15 million INR). The balance sheet should be enclosed for three years.

f)   The minimum net worth of the tenderer should be Rs.2.5 crores (25 million INR)

g)  The tenderer should not have been blacklisted by any court in or outside India.

h)  The tenderer as well as any of the Directors of the company should not have been declared insolvent in the last five years.

i)   The tenderer should be a consulting firm with atleast one office in each of the following places viz., U.S, Europe and Asia Pacific.

v   The payment conditions would be as follows:

1. No advance payment will be  made.

2. 60% payment will be released on submission of the Study Report.

1. 3.  10% payment will be released at the end of every year as a consultant fee for four (4) consecutive years.
2. 4.   The payment will be released within 15 days from the date of receipt of request from the successful bidder against submission of performance certificate to be certified by the Government in a prescribed format.
3. 5.    No interim payments under any circumstances will be paid.

VIVEK HARINARAIN

SECRETARY TO GOVERNMENT

/True Copy/

Section Officer