ONGOLE: Reverse tendering of Pothuraju (PR) Canal development project has saved Rs 15.62 crore to the state exchequer.
This is the second project in Prakasam district that went for reverse tendering after Poola Subbaiah Veligonda project.
The government had claimed that Rs 61.76 crore was the net saving due to the reverse tendering of Veligonda project.
Pothuraju canal reverse tendering was concluded on Tuesday late night and M/s Siri Constructions Infrastructure Private Ltd quoted Rs 62.72 crore as against the estimated cost of Rs 78.14 crore, 20 per cent less than estimated cost.
Pothuraju is an age-old drainage canal which carries domestic waste from Ongole city and receives seepage came towards Ongole city from the western upper areas and sends it out.
As people started to occupy drainage canals and seepage channels, Pothuraju canal has shrunk to almost half of its original size and it causes inundation in the city during heavy rains.
The then TDP government decided to develop the Pothuraju canal by spending around Rs 100 crore.
However, the TDP government couldn’t take up the project. After the YSRC came to power, local MLA and Minister Balineni Srinivasa Reddy took up the proposal.
The YSRC government has allotted `96 crore for the development of the canal in September. Subsequently, authorities prepared estimates and invited tenders with Rs 78.14 crore proposed expenditure in October.
Officials received tenders from companies from October 17 to November 7, 2019, and a total of nine companies submitted tenders in the stipulated time frame.
The officials opened the technical bids on November 9 and they finalised a company, which quoted 4 per cent less than the estimated cost, as L-1.
The officials conducted reverse tendering on Tuesday evening (November 12). The process took a long time and by late night, officials finalised M/s Siri Constructions Infrastructure Private Ltd, which quoted Rs 62.72 crore, as the contract agency.
“We are very happy with the result. Earlier, `62 crore was saved through reverse tendering of Veligonda Tunnel-2 works. Now, Rs 15.62 crore was saved through reverse tendering of Pothuraju Canal project. We will go for reverse tendering in all future projects,” N Nagesh, Superintending Engineer (SE), Water Resource department, explained.