5.2. Eligibility Conditions

1. The applicant for pre-qualification may be a single entity or a group of entities (otherwise referred to as a consortium) coming together to implement the project. However, no applicant applying individually or as a member of a consortium, as the case may be, would be eligible to submit another application either in individual capacity or as part of consortium.

2. An applicant may be a natural person, private entity, Government-owned entity or any combination of them

3. An applicant shall not have a conflict of interest that affects the bidding process. A few instance wherein an applicant is said to have conflict of interest are;

• If such applicant has common controlling shareholders with other applicant;

• If a constituent of such applicant is also a constituent of other applicant;

• If such applicant, receives or has received/ provided any direct or indirect subsidy, grant, concessional loan or subordinated debt to/ from any other applicant

• If such applicant has the same legal representative for purposes of the application as any other applicant;

• If such applicant, has a relationship with another applicant, directly or through common third party/ parties, that puts either or both of them in a position to have access to each others' information about, or to influence the application of either or each other;

• If such applicant thereof has participated as a consultant to the public entity in the preparation of any documents, design or technical specifications of the project.

4. Disqualification of any applicant, if the applicant has engaged any legal, financial or technical advisor of the public entity, for matters related to or incidental to the project

It may be noted, that in cases where eligibility conditions allow consortiums to submit application, additional conditions pertaining to such consortiums such as

• number of members in the consortium,

• extent of equity to be held by each of the members of the consortium in the special purpose company (also referred to as a Special Purpose Vehicle or SPV) which may be formed for implementation of the project and the duration thereof, etc.

• requirement to submit a joint bidding agreement setting out the roles and responsibilities of the consortium members. It shall also convey intent to form an SPV and commitment of minimum equity stake to be held by each of the consortium members in such SPV.

As per the model RFQ issued by the Ministry of Finance, Government of India, upon award of the project to an applicant which is either (i) a consortium or (ii) a single business entity other than a company incorporated under the Companies Act, 1956/ 2013; it is mandatory for such applicant to form an SPV. However, in cases where the applicant is a single business entity which is a company incorporated under the Companies Act, 1956/ 2013; formation of an SPV is optional.