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Andhra Pradesh saved Rs 780 crore through re-tendering of Polavaram project

The Andhra Pradesh government on Monday claimed that it saved Rs 780 crore public money through re-tendering of Polavaram project work.

After cancelling the contract awarded by previous Telugu Desam Party (TDP), the new government headed by Y.S. Jagan Mohan Reddy had earlier this month called fresh tenders for hydel power plant and main concrete works worth Rs 4,987 crore.

Officials said the fresh contract is awarded to Megha Engineering and Infrastructures Limited (MEIL), which came up with a proposal, costing 12.6 per cent less than an earlier contract. The MEIL bid for the works for Rs 4,358 crore. The government saved Rs 628 crore through this re-tendering.

Additional saving for an amount of Rs.152 crore was realized in Part-B (PIP Hydro Electric Project). Thus overall saving is around Rs 780 crore.

The chief engineer of the Polavaram project told the water resource department that to conduct the reverse tendering process, at least two bidders were required. As only one bidder participated, there was no provision for initiating the reverse tendering process.

This was the first reverse tendering called by YSR Congress Party (YSRCP) government since deciding to review all the major contracts awarded by the previous government and in cases where irregularities were committed, go for reverse tendering.

The government claims that reverse tendering enabled participation by a large number of bidders, thus ensuring transparency and bring down the cost by awarding the project to the lowest bidder.

The TDP, however, denied that any irregularities were committed in awarding the contracts. It said the government’s action would lead to delay in executing the projects.

Source: IANS