VIJAYAWADA: Municipal Administration and Urban Development Minister Botcha Satyanarayana has approved the modalities for reverse tendering for urban housing projects (for the poor) to be built by Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO). Accordingly, the department on Wednesday issued orders modifying the pre-qualification criteria to initiate reverse tendering.
The department has relaxed the pre-qualification criteria for the bidders so that more can take part in the tendering process. According to the orders issued by MAUD Secretary J Syamala Rao, the government has given permission for APTIDCO to “allow licensed bidders registered with municipal department to participate in the tendering process, to keep zero percent cap on premium, to accept the experience of the works executed for the private organisations and a certificate from a statutory auditor of the entities from which the experience is claimed, and to calculate the bid capacity under the formula 3AN-B instead of 2AN-B on a par with Water Resources Department.”
In a statement, the minister added that the new modalities would not only ensure larger participation, thereby resulting in competitive pricing, but also bring in transparency. “CM is firm on ending irregularities in the tendering process and, hence, decided to go for reverse tendering to save public money,” Botcha said.
Reverse tendering of urban housing will help the exchequer bring down the cost of construction, besides reducing the burden on the beneficiaries too. It will also put an end to the practice of awarding projects at an excess price without any reason,” the minister explained.
About six lakh houses are being built under various schemes including Pradhan Mantri Awas Yojana across the State. Botcha, pointing out that the per square feet cost during the previous government’s tenure was Rs 1,900 to Rs 2,311, said construction cost would not exceed Rs 1,300 per square feet. The government is expecting a saving of 10-20 per cent through reverse tendering.