CHENNAI: The Tamil Nadu highways department has begun to review the Rs 2,100-crore four-lane elevated corridor project, proposed on the 13.3-km Thiruvanmiyur-Uthandi stretch of East Coast Road (ECR), following allegations of irregularities in the tendering process and escalated project cost.
According to sources, the contract, which was awarded just two months before the 2026 Assembly election, is likely to be cancelled, with the project cost expected to be revised.
The average construction cost of the proposed project on ECR is estimated at `157.89 crore/km. In comparison, the NHAI has proposed a six-lane elevated corridor on the Maduravoyal-Outer Ring Road NH at an average cost of `147 crore/km.
Project unlikely to proceed at price quoted: Official
The tendering process is currently under way for the 8.14-km NHAI project, which is estimated to cost Rs 1,241 crore.
“The tender process for most of the projects awarded over the past six months is being reviewed. The cost of the Thiruvanmiyur -Uthandi project is also under scrutiny, as it is believed to be significantly higher than the actual requirement,” a source told TNIE.
An official said certain irregularities had been noticed in the contract award process of the elevated corridor project and a few others. “The violation varies for each project. It appears that the Thiruvanmiyur project is unlikely to proceed at the price quoted under the previous DMK government,” added the official.
The project has been mired in controversy since bids were invited in October last year. In December, Buildcon, a Bhopal-based infrastructure company, filed a petition in the Madras High Court alleging that its bid was rejected during the financial evaluation despite quoting nearly Rs 500 crore less than the firm that was eventually selected.
The project’s cost has come under scrutiny, as the construction cost of the proposed flyover is considerably higher than that of several six-lane elevated corridor projects being implemented by the NHAI under the union government.
The NHAI flyovers are designed to accommodate heavy commercial traffic and are generally built to more stringent design and construction standards than state highways projects. “In principle, the construction cost of a reinforced cement concrete (RCC) flyover executed by NHAI should be higher than that of a similar structure built by the state highways department. The cement and other construction materials used in NHAI projects are typically of a higher specification, which also increases the overall cost,” a source said
A retired highways engineer pointed out that it is not uncommon for the lowest financial bidder to be rejected if it fails to satisfy other tender conditions. “For instance, if one company quotes Rs 105 crore for a bridge or flyover and another quotes Rs 110 crore or Rs 115 crore, the latter may still secure the contract if the lowest bidder does not meet the prescribed eligibility criteria. In such cases, the reasons for rejection are communicated to the bidder in writing,” he said.
However, in the case of the ECR elevated corridor project, the difference between the competing bids was around Rs 500 crore, accounting for nearly 25% of the total project cost. “It is not clear what tender conditions or evaluation parameters prompted the tender committee to overlook the lower bid,” he added.
The Tamil Nadu State Highways Authority (TNSHA), which is implementing the project, issued the Letter of Award in February this year, and subsequently signed an agreement with the selected contractor.
“As per the agreement, the contractor has been given 180 days from the date of award of the contract to commence civil works. All the necessary documents and certificates required to secure project financing have already been issued. If the government decides to proceed without any modifications, construction is likely to begin in August or September,” an official said.
Following a series of petitions and appeals, the HC directed Buildcon, whose bid was Rs 500 crore lower than that of the company selected after the financial evaluation, to submit a representation to the government.
The court also instructed TNSHA to take a decision within 10 days of receiving the representation. However, Buildcon allegedly failed to submit its representation within the timeframe stipulated by the court. Consequently, the work order was issued to the selected contractor, and the project was formally launched.