The Tamil Nadu government announced that it would discontinue the ‘package tender’ system in the Public Works Department. It had caused the exchequer an additional expenditure of ₹50,000 a km and did not favour local small-time contractors, Minister for PWD and Highways E.V. Velu said in the Assembly on Friday.
The government would restructure the tender system. The rule for contractors to renew their registration would be revised once in three years as against once a year, he said. The registration of contractors and renewal of registration would be undertaken at the level of Regional Chief Engineers.
During a debate, Mr. Velu said the ‘package tender’ system resulted in “unknown” individuals from outside the State being awarded projects. Local contractors could not get projects since they were not made eligible for the tender. Leader of the Opposition Edappadi K. Palaniswami said that only those who were found eligible for the tender process were allowed during the AIADMK government. Mr. Velu contended that locals, who were more concerned about implementation of projects in their areas, could not get a chance to take part in the tender.
“Compared with the regular tender process, the ‘package tender’ process resulted in an additional expenditure of ₹50,000 a km,” Mr. Velu said. Moreover, local small-time contractors could not take part in the tender, and this resulted in unemployment among youth.
Information Minister M.P. Saminathan pointed out that the ‘package tender’ system was introduced by the AIADMK government between 2001 and 2006, and it was discontinued by the subsequent DMK government under M. Karunanidhi. “The AIADMK re-introduced the system in 2011,” he said.
Mr. Palaniswami responded that there was no legislation to regulate the system to be adopted in the award of tenders. Mr. Velu went on to point out that if the total estimate of a project was ₹800 crore or ₹1,000 crore, local contractors could not take part in the tender as they had taken tenders so far with lesser estimates.
