YS Jagan's first reverse tendering saves Rs 58.53 cr in Polavaram
The AP government has saved at least Rs 58.53 crore after going through the Reverse Tendering Auction for the balance works for construction of irrigation tunnel about 919 m long, Left Flank Head Regulator, Navigation lock, excavation of approach channels 1 and 2, exit channel and excavation of navigation channel.
Amaravati: The AP government has saved at least Rs 58.53 crore after going through the Reverse Tendering Auction for the balance works for construction of irrigation tunnel about 919 m long, Left Flank Head Regulator, Navigation lock, excavation of approach channels 1 and 2, exit channel and excavation of navigation channel.
The reverse tendering auction was conducted on Friday by the Irrigation and Water Resources authorities. The Estimated Contract Value (ECV) for the project is Rs. 276.80. This was 4.77 less than the Rs 290 crore, for which the same work was awarded to the Max Infra limited, Hyderabad on March 9, 2019, by the TDP government. Now, the YSRCP government terminated the tenders from the Max Infra, and the company gave consent to the government on August 17, 2019.
After terminating the tender, the government called for the Tender cum Auction (Reverse Tendering) on the same day. The Bid document was uploaded in to e-procurement website on August 31 and allowed for submission of the bids till September 18.
Six companies including Patel Engineering Ltd, Mumbai, Mega Engineering and Infrastructure Ltd, Hyderabad, Max Infra Limited, Hyderabad, AFCONS Infrastructure Ltd, Mumbai, MRKR-SLR (JV), Hyderabad and PRCIIPL-WCPL Consortium, Hyderabad have participated in the bidding. All of them furnished required pre qualification documents.
The price bid opened on Friday at 11 am and initial offer quoted by a bidder for Rs 260.26 crore, and it was considered as L1.The name of this company was not disclosed. The Reverse Auction conducted from 2 pm on Thursday, from the initial price quoted by the L1 bidder, that is Rs 260.26 crore. The six bidders participated in this auction, which was conducted through online.
This reverse tendering auction has been conducted as per the guidelines issued in the GO Ms No 67, Water Resources department on August 16.
After completion of the Reverse Auction process, the same Max Infra Ltd emerged as L1 bidder by quoting their bid for Rs 231.46 crore. This at 15.6 less than the ECV of Rs 274.25 crore. The L1 discount is calculated as Rs 42.78 crore.
As seen all these, the savings from the previous agreement value and present value is about Rs 58.53 crore, informed the officials at Chief Minister Office in a statement.