Andhra Pradesh

Govt. says it saved ₹58 crore on reverse tendering for Polavaram package

Hyderabad-based firm bags contract for ₹231.46 crore

The State government appears to have succeeded in its attempt to go in for reverse tendering if the “savings of ₹58.53 crore” were any indication.

The government finalised tenders for package 65 — Polavaram left connectivity — on Friday. Hyderabad-based MAX Infra (I) Limited bagged the contract. While six companies were in the fray, MAX Infra emerged as L1 bidder.

After completion of the reverse auction process, the firm quoted ₹231.46 crore, which is 15.6% less than the estimated cost value (ECV) of ₹274.25 crore. The savings from the previous agreement (during the previous government) and the present agreement value is ₹58.53 crore, said a press release from the government.

Incidentally, the same company bagged the contract during the TDP regime. The firm then quoted 4.7% excess over ECV of ₹276.80 crore. The works were awarded at ₹292.09 crore. The agency executed the works for a value of ₹2.55 crore (0.92% approximately) as on August 17 this year against the value, and expenditure was not incurred so far.

Patel Engineering Limited, Mumbai; MEGA Engineering and Infrastructure Limited, Hyderabad; AFCONS Infrastructure Limited, Mumbai; MRKR-SLR(JV) Hyderabad and RRCIPL-WCPL Consortium, Hyderabad, were other firms that participated in the bidding.

Financial bids

On the other hand, the financial bids for Polavaram would be opened on September 23. The financial bids were submitted for Head Works, Spillway, Spill channel and earth-cum-rockfill dam. The government stated that the tender value of the main dam was ₹1,771 crore.

After opening technical bids, Water Resources Minister P. Anil Kumar said it was a good development as the government could save about ₹50 crore through reverse tendering. The financial bids for Polavaram, which would be opened on September 23, would throw light on how much public money could be saved further, he said.

The State government went ahead with reverse tendering after experts committee found that irregularities took place in awarding the contracts.

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Printable version | May 18, 2020 12:26:12 PM |

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