The Gigantic Move
“The journey of a thousand miles begins with a single step”. it all started when one of the subsidiary of Coal India Limited, embarked on one of the largest Open Cast Project (OCP) initiatives. This venture aimed to extract a staggering volume of coal annually, requiring the dispatch of around 40 rack loads all around the year, implies one rack every 30 minutes, a testament to the project’s vast scale.
The Vision and Investment
To realize this ambitious vision, a private player in the MDO structure was required to invest Rs. 2500 Crores over five years. The project’s potential to generate revenue over its 25-year contract period. Recognizing the project’s high stakes and complexity, one of the leading private sector players, a client of Infra Advisors sought the advisory of Infra Advisors, a firm renowned for its proficiency in large-scale infrastructure projects.
Unwavering Confidence
From the outset, the Client’s confidence in our capabilities was palpable. The client manifested its intention to maintain winnability and viability that the bidding strategy of the Project be advised by Infra Advisor. This confidence of the Client was crucial, responsibility was humongous as the stakes were exceptionally high, leaving no room for error.
Winning the Bid
Despite all the challenges faced, bid of our client was a winning bid. The initial euphoria was tempered by the visible gap between the Client bid and the next highest bid, raising concerns about potentially aggressive bid, typically known as Winner’s Cruse. These concerns were put to rest, when the Project Authority questioned the bid value, terming it a higher than their expectation.
Bid Acceptance
We worked tirelessly and eventually convincing the Project Authority of its appropriateness after long engagement, deliberation, and discussion over around six months. Minor adjustments were made, and the bid was accepted, marking a significant milestone in the project’s journey.
Securing Financial Closure
The final challenge was achieving financial closure. The banking sector’s initial hesitation, rooted in past experiences and unfamiliarity with the MDO concept, was a significant barrier. By leveraging our deep project knowledge and strong client support, we established a robust connection with the banking sector. Our relentless efforts paid off, securing the necessary financing to bring the project to fruition.
A Testament to Expertise and Commitment
This case study exemplifies the critical role of Infra Advisors in guiding client through a highly challenging and high-stakes project. From bidding to securing financial closure, our expertise and unwavering commitment were instrumental in turning a visionary project into reality. The success of the OCP project is a testament to dedicated effort, engagement, knowledge of the sector in the face of formidable challenges.