Andhra Pradesh Chief Minister YS jagan Mohan Reddy adamantly went about the Reverse Tendering of the Projects even though the Central Government and others tried to apply brakes. But jagan proved to be correct as Reverse Tendering is yielding savings. The latest is that 62.1 Crore of public money was saved on the Veligonda irrigation project tunnel-2 work.
Megha Engineering and Infrastructure Limited (MEIL) quoted a price of Rs 491 Crore for executing the work which is 7 percent lesser amount when compared to the work earlier awarded by the previous TDP regime for Rs 553.13 crore, including a tender premium of Rs 24.78 crore. 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.
This second irrigation project was put up for reverse tendering. Previously, the State Government claimed to have saved around 900 Crore in Polavaram Irrigation Project, taking the total savings on the two Projects close to 1000 Crore. The government claims the companies are quoting lesser amounts because they need not pay kickbacks to the Government like in the case of the previous regime.