New Delhi: Tata Realty and Infrastructure Ltd (TRIL) will lose Rs20 crore earnest money submitted to the National Highways Authority of India (NHAI) after the firm, which won two highway building contracts, withdrew its bids citing miscalculation of costs, a top NHAI official said.
TRIL was the lowest bidder for two projects worth a total of Rs2,500 crore for the Kishangarh-Udaipur-Ahmedabad section of National Highway 76, where the existing four-lane road is proposed to be expanded to six lanes.
The developer is also supposed to build underpasses, flyovers and bridges. The projects were awarded under the National Highway Development Programme (NHDP) Phase V and were to be allotted on the build-operate-transfer model.
According to an NHAI official who requested anonymity, after winning the bid, TRIL wrote to NHAI, saying it had miscalculated costs, and therefore would like to withdraw from bidding. “The bid security of Rs10 crore for each project may be small, but this shows an example of how global companies are causing errors and delaying projects,” the official said.
NHAI chairman Raghav Chandra confirmed TRIL will forfeit the money, saying such circumstances “are often one of the reasons that delay highway projects and they need to be dealt with now”. He refused to comment further.
Phone calls and emails to TRIL remained unanswered as of press time.
“This is not for the first time that NHAI is facing such problems. The irresponsible behaviour of Indian corporates especially has come to fore several times but it remains unreported as these are one of the reasons causing inordinate delays in allocating highway projects,” said the NHAI official cited above.