PMC scrap the tender process for 24x7 water scheme
Municipal commissioner Kunal Kumar briefed the media and announced that the PMC has decided to scrap the existing tender process.Updated: Aug 04, 2017, 16:48 IST
After lot of criticism by opposition parties and the media, the Pune Municipal Corporation has finally decided to scrap the existing tendering process for the city’s mega 24x7 water scheme. The total cost of the project is Rs 3,300 crore.
Three firms has participated in the tendering process, including Larsen &Toubro. Chief Minister Devendra Fadnavis himself interfered in the matter and instructed the municipal commissioner to scrap the existing process.
Bhartiya Janta Party’s MP Sanjay Kakade told media persons that the chief minister given the orders to municipal commissioner Kunal Kumar to scrap the tenders, but the local leaders, including mayor Mukta Tilak, standing committee Chairman Murlidhar Mohol and leader of the house Srinath Bhimale claimed that the decision had been taken at the local level.
Municipal commissioner Kunal Kumar briefed the media and announced that the PMC has decided to scrap the existing tender process. Kumar said, “The Central government introduced the Goods and Service Tax (GST). As per the new GST rates the cost of pipes which will be needed for a 1,700 km distance has come down. By considering the new rates of GST, the civic body has decided to revise the estimate cost of the project and make a new proposal. ”
The commissioner said that no one is in opposing the 24x7 water scheme. All political parties are in favour of it and the only issue is of the tenders which are all 26 percent above the estimated cost. The PMC will float the new tenders within the period of one month and expect to finish the process in the next three months.
Mayor Tilak, leader of house Bhimale and standing committee chairman Mohal also held press conferences and supported the decision of scrapping the tender process. Tilak said that mainly because of GST, the local leaders with guardian minister Girish Bapat decided to scrap the tendering process. This decision has been taken by local leadership to save the tax payers money, but the members denied the charges of a cartel between participant companies.
Nationalist Congress Party leader Chetan Tupe, Congress leader Arvind Shinde and Shiv Sena leader Sanjay Bhosale welcome the decision of cancelling the tender process. The opposition leaders blamed the ruling BJP and the municipal commissioner for the tenders reaching 26 per cent above the estimated cost.
PMC floated a municipal bond to raise funds to execute the 24x7 water scheme and is the first civic body in the country to do so. Rs200 crore has been raised through the bonds so far.
24x7 water scheme
The total project cost of PMC’s 24x7 water scheme is Rs 3,300 crore of which Rs. 431 crore is for the laying of pipelines. Under this scheme PMC will lay the new water pipelines over an area of 1,700 km. The PMC will erect more than 100 new water tanks.