Rs 60 Crore Saved On Veligonda Project Through Reverse Tendering

Amaravati: The Andhra Pradesh government has stated that Rs 62.1 Crore of public money was saved on the Veligonda irrigation project tunnel-2 work through reverse bidding process.

The government recently cancelled the work earlier awarded by the previous TDP regime for Rs 553.13 crore, including a tender premium of Rs 24.78 crore, and initiated the reverse bidding process.

As part of the tender bid Megha Engineering and Infrastructure Limited (MEIL) quoted a price of Rs 491 Crore for executing the work, a press release from the Chief Minister's Office said. The MEIL group has secured the tender at 7 percent lesser amount.

The previous contract was awarded for 4.69 per cent excess but the value of the work was scaled down to Rs 528.35 crore in the reverse tendering.The tender has bid for 3 percent less and in reverse tendering bid it has gone down by for 4 percent. In the commercial stage itself, the initial saving is Rs 40.63 crore, while the overall final saving after reverse bidding is Rs 62.1 crore, the release said. This second irrigation project was put up for reverse tendering.

Also Read: Reverse Tendering Initiative Of CM YS Jagan A Hit! Saves Rs 58 crores Of Public Money