Andhra does a U-turn on Swiss method, withdraws tenders for development of Amaravati start-up area

The state govt brings an ordinance to amend AP Infrastructure Development Enabling Act and decides to nullify present notification.

HYDERABAD: In a significant development, the Andhra Pradesh government on Wednesday informed the Hyderabad High Court that it has decided to withdraw the tender notification issued for development of 6.84 square kilometers start-up area in the new capital city of Amaravati and to issue a fresh notification inviting Request For Proposal (RFP) from the eligible companies again for the purpose.   

AP advocate general Dammalapati Srinivas made this submission before a division bench comprising Acting Chief Justice Ramesh Ranganathan and Justice U Durga Prasad Rao which was dealing with an appeal filed jointly by the state government and the Capital Region Development Authority (CRDA) challenging the interim order of a single judge who stayed all further proceedings of the notification issued for development of the start-up area of Amaravati city under Swiss challenge method. Two petitions filed by Aditya housing company and Envian engineers private limited challenging the tender notification issued by the state was also pending before the court.

On Sept 12 this year, the single judge granted stay on notification and the Addendum-cum-Corrigendum issued by the CRDA commissioner for development of capital city till disposal of petitions. Alleged non-transparency in the method adopted by the government and non-disclosure of the revenue share details offered by the Singapore consortium was shown as major lapses by the petitioner companies challenging the notification.

Aggrieved with the single judge stay order, the AP government and CRDA moved an appeal before the division bench and the latter was in the process of hearing all the claims and counter-claims of both the parties.

On Wednesday when the matter came up for hearing before the bench, Dammalapati submitted that the state is not interested in proceeding with the present notification issued for inviting bidders under the Swiss challenge method. The state has brought in an Ordinance making an amendment to the Andhra Pradesh Infrastructure Development Enabling Act and decided to nullify the present notification and issue a fresh notification to invite bidders for development of start-up area of the new capital city. Hence, the appeals and petitions pending before the court would become infructuous, the AG said.

After recording the submissions of the AG, the bench closed the two writ petitions and the appeal. The bench granted liberty to the petitioner companies to challenge if they have any objection on the fresh notification to be issued by the state.

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