VIJAYAWADA: Municipal Administration and Urban Development Minister Botcha Satyanarayana said that reverse tendering held for urban housing (for poor) project in Guntur district on Tuesday helped save Rs 13.7 crore.
The minister added that the State government has salvaged Rs 316.94 crore so far by going in for reverse tendering for nine packages of housing project.
According to a statement issued by the minister’s office, fresh tenders for 2,176 units of housing in Guntur district was called with an initial benchmark value of Rs 130.42 crore. In the reverse auction process, Shradha Saboori Projects (India) Pvt Ltd filed the lowest bid of Rs 116.72 crore, effectively resulting in savings of Rs 13.7 crore.
“The reverse bidding of housing project is yielding successful results. So far, we have saved Rs 316.94 crore by going for reverse tendering for 50,784 housing units. While the earlier value was Rs 2,529.43 crore, the reverse auction helped in bringing the project cost down to Rs 2,212.49 crore,” Botcha said.