Jagan govt claims saving Rs 58 cr in reverse tendering for one package of Polavaram project

The government called for fresh tenders under reverse tendering system for the works under package no. 65 of the Polavaram project.

The Andhra Pradesh government headed by chief minister Y S Jagan Mohan Reddy on Friday claimed to have saved Rs 58.53 crore for a package of works of Polavaram major irrigation project through reverse tendering process.

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy ‘s government had alleged that there were irregularities in the original awards of the tenders for the Polavaram project. (PTI)

An official release from the chief minister’s office said the fresh tenders were called under reverse tendering system for the works under package no. 65 of the project, which included construction of head regular left plank, navigation lock and approach channels 1 and 2, besides balance works of exit channel navigation channel of the Polavaram project right canal.

The water resources department opened the technical bids for the project on Friday. A total of six companies participated in the bids. “The tenders for this package are finalised. Max Infra Company bagged the tender by quoting 15.6 percent less than the initial benchmark cost of Rs 274.55 crore,” the official release said.

It pointed out that the same company bagged the contract during the Telugu Desam Party regime headed by N Chandrababu Naidu by quoting 4.8 percent excess of the initial bench mark. “This clearly proves the corruption prevailed in the previous government,” the CMO release said.

Max infra company secured the bid for Rs 292.02 crores during TDP’s regime. The same firm quoted Rs 231.47 crore for the same works in the present reverse tendering conducted by the Jagan government, thereby saving an amount of more than Rs 58 crore to the government.

The chief minister’s decision to go for reverse tendering had drawn flak from the opposition parties and also strong objections from the Centre. The Polavaram Project Authority under the Union ministry of Jal Shakti, in its emergency meetings, pointed out that the reverse tendering would not only delay the project but also result in cost escalation.

The Centre, too, wrote letters to the state government seeking withdrawal of plan to go in for reverse tendering of the project.