Pre-qualification terms may leave out many from bids If only one company qualifies;
IIT-Hyderabad has to award the contract to it without competitive bidding.
The Indian Institute of Technology, Hyderabad, has allegedly
framed pre-qualification conditions that leave out all major construction firms
that are in contention for the 750 - crore permanent campus project, except one.
The 750 - crore permanent campus projects involves the construction of several buildings
and other infrastructure at Medak. According to the terms and conditions of the
pre-qualification application, the bidder must have completed, on its own and without
forming any joint venture, at least three construction works worth 300 crore each.
Of these three, one must be executed for the government or autonomous body or Stateowned
Company. “The execution of a 300 crore building project in government space without
a joint venture partnership is a difficult proposition. No company in India, except
one, can bid for the project,” said the senior official of a Mumbai-based construction
company, requesting anonymity. The pre-qualification conditions were announced on
December 30, 2011. The deadline for applications is January 23, 2012. If only one
company qualifies, IIT-Hyderabad has to award the contract to it without competitive
bidding. The institute could stand to lose money this way. IITs have access to public
money in the form of grants from the Union human resource ministry.
When contacted, IIT Hyderabad executive engineer Ravindraba refused to comment,
saying that only the director of the institute is authorized to talk to the media.
Attempts to contact the director proved futile. A top official of a construction
major, however, alleged, “The tender is manipulated to favour one company. The pre-qualification
terms disqualify all others in the country.” “I don’t see any rationale in awarding
all buildings to one construction company. If IIT divides the 750 crore projects
into seven pieces and invites tenders, it will bring in healthy competition and
help it to save money,” an official from another company pointed out.
Courtesy: Deccan Chronicle
