Polavaram irrigation project: Bids for Rs 5 thousand crore works to be opened on September 23

Reverse tendering to be held on Monday to finalise contractor; contract to be awarded only after getting HC nod

Published: 22nd September 2019 10:43 AM  |   Last Updated: 22nd September 2019 10:43 AM   |  A+A-

Of the 7.5-km-long tunnel works awarded,  works related to less than 500 metres were completed. 

Of the 7.5-km-long tunnel works awarded,  works related to less than 500 metres were completed. 

Express News Service

VIJAYAWADA: The bidding for the headworks, spillway and balance works of Polavaram irrigation project and the 960 MW hydel power plant concluded on Saturday, the officials from the Water Resources Department said.

They added that the bids for the works worth Rs 4,987.55 crore would be opened on Monday morning, following which the details of the companies which participated in the bidding would  emerge. The reverse tendering will be held on the same day in the evening to finalise the contractor.

“The bidding has been completed for Rs 1,771.44 crore worth irrigation component works and Rs 3,216.11 crore hydel power plant works. The details of the firms which filed the bids and their financial quotes will be known on Monday as they are scheduled to be opened at 10 am.

In the evening, we will conduct reverse auction in which the eligible agencies will participate,” a senior official said.  

According to information, the State government, which managed to save Rs 58.53 crore through reverse tendering of package 65 — left main canal works -- of the project, is estimating to salvage at least 10 to 15 per cent of the estimated contract value of Rs 4,987.55 crore. This would translate to an estimated saving of about Rs 500 crore to Rs 750 crore. 

Patel Engineering Ltd, Megha Engineering and Infrastructures Ltd (MEIL), Afcons Infrastructure Ltd, Max-Infra (I) Ltd, which had also filed bids for the package 65, had evinced interest to participate in the tender process for irrigation and power plant works.

The officials, however, clarified that even though the reverse tendering will be completed by Monday, the department would award it only after getting a clearance from the High Court. 

It may be noted that Navayuga Engineering Company Ltd (NECL) had moved court against the cancellation of the hydel power plant contract awarded to it by the APGENCO. The court had given interim orders suspending the APGENCO’s move to terminate the contract and directed that the process of entrustment to a new agency should be stopped. “Therefore, only after intimating the court, we will proceed to the next step,” an official explained.

Reverse tendering for Veligonda project’s tunnel-II

Vijayawada: Buoyed by the success of reverse tendering for package 65 of Polavaram project, the Water Resources Department, it is learnt, will release tenders for reverse auctioning of tunnel-II of Veligonda project on Monday.

The government has decided to go for fresh tenders based on the recommendations of the expert committee, which found anomalies in the tender awarded.

The anomalies included steep jump in the price of the contract, awarded to the agency affiliated to a TDP MP, significantly to Rs 597.35 crore, about 4.7 per cent in excess of the estimated contract value.

Of the 7.5-km-long tunnel works awarded,  works related to less than 500 metres were completed. 

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