Vijayawada

Polavaram reverse tendering a big success, says A.P. govt.

The Andhra Pradesh government has awarded the Polavaram contract to Megha Engineering and Infrastructure Limited  

The YSR Congress Party government has claimed a big success of its reverse rendering concept and a saving of ₹628 crore to the exchequer in the Polavaram Project works. Megha Engineering and Infrastructure Limited (MEIL) has bagged these works quoting an amount that was 12.6 per cent less than the base price fixed by the government.

MEIL was the only company to make a bid for ₹4,359.12 crore for completion of the unfinished works. This works out to a saving of ₹628.43 crore, that is, 12.6% lesser than the ECV (estimated contract value as per detailed estimate) IBM (internal bench mark) value of ₹4,987.55 crore fixed by the government.

MEIL, which has constructed the Pattiseema Lift Irrigation Scheme, has bagged the contract for completion of Polavaram project, including headworks and the Hydro Power Plant. The new government has always been saying that reverse tendering would save the exchequer a lot of money.

Bid value

Polavaram Project Chief Engineer B Sudhakara Babu in a letter to the Water Resources Special Chief Secretary Aditya Nath Das said: “As the bid value was less than the IBM value, it may be appropriate to award the contract to Megha Engineering and Infrastructure Limited”.

The Chief Engineer in the letter said: “As per GO Ms N.67 date August 16, 2019, in order to conduct the reverse tender process, at least two bidders were required.” As only one bidder had participated, there was no provision for initiating the reverse tendering process, the official said.

He, however, recommended that the contract be awarded to MEIL as the bid value made by the company was lesser than the IBM value.

Work to be completed

Once the government finalises the tender, MEIL would be required to complete balance works of investigation, survey, preparation of designs and drawing and schedules for the construction of the incomplete bits in the Earth-Cum-Rock-Filled Dam, Spill Channel, Approach Channel, pilot channel, spillway, excavation of foundations of the 960 MW Hydro Electric Power House and other works under lump some contract sytem under Part A of the tender.

Part A of the bid also covered Operation and Maintenance of the Polavaram Irrigation Project for five years. This includes a defect liability period of two years. The Part B of the tender covered the designing, manufacturing and installation of the turbine generators in the power house.

The tender should be finalised to MEIL subject to clearing the technical/commerical qualification criteria before the last date of October 1, the Chief Engineer said in the letter.

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Printable version | May 15, 2021 8:09:15 AM | https://www.thehindu.com/news/cities/Vijayawada/govt-says-saved-628-crore-in-polavaram-project-after-reverse-tendering/article29494401.ece

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