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No reverse tendering for 2 Polavaram works as one firm files bid

The Water Resources department will open the bid filed by the agency at 11 am on September 23 to see the price quoted by it and will take a call on the future course of action.

Published: 23rd September 2019 11:06 AM  |   Last Updated: 23rd September 2019 11:06 AM   |  A+A-

The NECL was also executing the irrigation works, but had consented to the government’s order to exit the project.

The NECL was also executing the irrigation works, but had consented to the government’s order to exit the project.

Express News Service

VIJAYAWADA: The state government has dropped its plan to go for reverse tendering for the balance works of irrigation and 960-MW hydel power project of Polavaram project with only one firm — Megha Engineering and Infrastructure Ltd (MEIL) — filing a bid.

The Water Resources department will open the bid filed by the agency at 11 am on Monday to see the price quoted by it and will take a call on the future course of action.

Even though eight companies participated in the pre-bid meeting of the headworks, spillway, balance irrigation works and hydel power plant, worth Rs 4,987.55 crore, only a single bid was filed by the end of the bidding process on Saturday.

“Since only one firm has filed the bid, there will not be any reverse auctioning process. The bid will be examined to see the quoted price. If it is less than the estimated contract value (ECV) of Rs 4,987.55 crore, we will most likely award it to the firm. If it is in excess of the ECV, we will reject it and go for a second call,” a top-ranking official told TNIE.

If MEIL quoted less price than the ECV, the State government will inform the High Court and only then finalise the contract as Navayuga Engineering Company Ltd (NECL), which was the earlier agency executing the power plant, moved the court against the government’s decision to terminate the agreement.

The NECL was also executing the irrigation works, but had consented to the government’s order to exit the project.

Asked if the department has any price in mind for awarding the project since the reverse tendering process stands cancelled, the official replied in the negative.

“Usually, in cases of a single bid being filed, we go ahead if the price is less than the ECV. We will have to see what MEIL has quoted. Based on that, we will take a call after duly informing the State government, the Polavaram Project Authority (PPA) and the High Court,” the official explained.

It maybe recalled that TDP leaders, have been alleging that the government went for retendering of the national project only to favour YSRC aides.

Naidu alleged that the government already reserved an agency and was just using reverse tendering as a pretext.

However, Water Resources Minister Anil Kumar denied the allegations and said that the entire process was transparent. He stated that the government did not stop any agency, including NECL, from participating in the bidding process.

The minister pointed out that the reverse tendering for Package 65 (left canal works) of Polavaram project helped the exchequer save Rs 58.53 crore.

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