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Business News/ Politics / News/  Polavaram row: AP govt says it saved Rs.780 crore more through reverse tendering
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Polavaram row: AP govt says it saved Rs.780 crore more through reverse tendering

The YSR Congress Party government had called for re-tendering of hydel power plant and main concrete works worth Rs. 4987 crores
  • The MEIL bid for the Polavaram national irrigation project was Rs. 4358 crore
  • Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy (Photo: ANI)Premium
    Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy (Photo: ANI)

    HYDERABAD : The government of Andhra Pradesh on Monday said that it saved Rs.780 crore of public money through the re-tendering process of works for the ongoing Polavaram national irrigation project. The YSR Congress Party government had called for re-tendering of hydel power plant and main concrete works worth Rs. 4987 crores, for which it said Megha Engineering and Infrastructures Limited (MEIL) came up with a proposal which was 12.6% lesser than the earlier contractor.

    The MEIL bid for the aforementioned works was Rs. 4358 crore. The state government, in a press release, said that it Rs.628 crore through this re tendering and an additional saving for an amount of Rs.152 crore in another project, both totalling to savings of about Rs.780 crore. However, it may be noted that in this case, MEIL was the only applicant for the works, as there was no bidding process since it requires two applications.

    “The Chief Engineer of the Polavaram project told the Water Resource department that to conduct the reverse tender process, at least two bidders are required. As only one bidder has participated, there is no provision for initiating the reverse tendering process," said the statement. Last week, the state government had initiated its first reverse tender bid, in which it said it saved public money to the tune of Rs.58 crore through the same process, for a different package work of the project.

    The government stated that Max Intra (I) Ltd, was the lowest bidder which quoted 15.6% lesser ( 231 crore) than the estimated cost of Rs.274 crore, for the 65th package of the Polavaram project’s Left connectivity works. In a previous statement, it said that the same company had secured the same work for 292 crore during the previous Telugu Desam Party government, led by former chief minister N. Chandrababu Naidu.

    The AP government, led by chief minister YS Jagan Mohan Reddy, has begun reverse-tendering various works in the Polavaram irrigation project, citing alleged corruption during the previous TDP government’s time. The project has also become a contentious matter between the state and Centre, after the AP government in July issued a pre-closure termination notice for works over 3,000 crore, given to Navayuga Engineering Company limited, which was supposed to complete part of the ongoing project works.

    The decision was based on the recommendation of an expert committee. The construction giant was asked to consent to the termination or exit the project and settle accounts in 15 days (it approached the AP High Court and has got a stay in August). The move also did not go down with the Centre, which has since sought details of the expert committee’s recommendations.

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    Published: 24 Sep 2019, 12:30 AM IST
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