VIJAYAWADA: The reverse tendering process, set in motion by the State government, for the balance Polavaram irrigation dam works and the 960 MW hydel power plant appears to be bearing fruit with the lone bidder, Megha Engineering and Infrastructure Limited (MEIL) quoting Rs 4,358.11 crore -- 12.6 per cent less than the estimated contract value (ECV) Rs 4987.55 crore -- of the twin projects.
It translates to a saving of Rs 782 crore for the State exchequer. Straight up the bid is Rs 628.43 crore less than the ECV, government sources pointed out, adding that it jumps to Rs 782 crore if one takes into account the additional saving of Rs 152 crore made on the power project. The erstwhile TDP government had earlier awarded the power project at 4.8 per cent excess value than its ECV of Rs 3157 crore, they said.
The Jagan government went in for reverse tendering of Polavaram dam and hydel project works based on the findings of an expert panel constituted to look into alleged irregularities in awarding the contracts by the previous government. The erstwhile TDP dispensation had awarded the contracts on nomination basis to Navayuga Engineering Company Limited (NECL).
The e-procurement tender-cum-auction notice was issued on August 17 for Part A - Polavaram head works main dam package on LS contract system for Rs 1,771.14 crore (works to be completed in 24 months) and Part B- hydro electric project on EPC turn-key basis for Rs 3,216.11 crore (to be completed in 58 months). Though eight companies attended the pre-bid meeting on September 9, only MEIL filed the bid by the last date, viz September 21.
Review of new deal to be completed by October 1
MEIL bid was open Monday afternoon. As per GO 67 issued on August 16, at least two bidders are required for the reverse tendering process. As only one bidder participated, the need for reverse tendering does not arise now. Citing the same, the Chief Engineer of Polavaram project head works, in a letter, recommended to the special chief secretary, Water Resources Department, that the contract be awarded to MEIL since its bid value is less than the ECV and also to expedite the works.
The State government will now have to inform the High Court, where NECL is fighting a legal battle over the government’s move to scrap the hydel power project contract awarded to it. NECL, which was also executing the irrigation dam works, agreed to exit the same following a government order. Sources said the matter in the High Court could be decided as early as Tuesday in government’s favour.
Though MEIL has sealed the deal for all practical purposes, the award of contract is subject to it clearing the technical/commercial qualification criteria. The review of it is set to be completed by October 1. Sources also said that since the State government has constituted the Judicial Commission to vet all contracts worth over Rs 100 crore, the Polavaram contracts will have to go before it for final approval.
Govt to inform HC
The government will now have to inform the High Court, where NECL is fighting a legal battle over the government’s move to scrap the hydel power project contract