UP Expressway Industrial Development Authority (UPEIDA) broke the cartel of construction companies by docking nearly 10 per cent less price for construction of the much-hyped 312 km long Purvanchal Expressway, thereby saving around Rs 600 crore. Once operational the Expressway will connect lucknow with Ghazipur.
The technical and financial bid for Purvanchal Expressway was opened on Monday and well placed sources said that the total bid was almost 10 per cent less. The proposal will be sent to the state cabinet for its clearance on Tuesday.
“The last time the bid was almost 10.97 per cent overpriced because construction companies joined hands and worked as cartel. They identified their own packages and bade accordingly. The UPEIDA was able to break the cartel and new bids are almost 10 less which will save atleast Rs 600 crore,” a senior UPEIDA official said.
The cabinet had cancelled eight bids of the Purvanchal Expressway on June 5 saying these were overpriced. The cabinet asked UPEIDA to go for joint technical and financial bid and asked the Authority to complete the process within 45 days.
Majority of the companies like l&T, Reliance Infrastructure, AFCONS and NCC that were instrumental in construction of Agra Expressway failed to make the cut this time. Instead, companies like PNC Infratech limited, Gayatri Construction, GMR Infratech, Oriental Construction and Apco Construction Group locked as lowest bidders for the eight package Expressway.
PNC Infratech limited, Gayarti Construction and GMR Inftatech ‘s bids were lowest for two packages each while one each bid for Apco and Oriental was found to be lowest.
The Purvanchal Expressway is one of the present regime’s most ambitious infrastructure projects, which it plans to promote before the 2019 lok Sabha elections.
Another proposed project — the Bundelkhand Expressway — is in preliminary stage. The Purvanchal Expressway, which has has been divided into eight ‘packages’ (segments), will connect lucknow, Barabanki, Faizabad, Ambedkarnagar, Amethi, Sultanpur, Azamgarh, Mau and Ghazipur.
In lucknow, it will start from Chand Sarai area near NH-56 and its estimated cost will be around Rs 23,000 crore.
The Allahabad Bank has agreed to give a loan of Rs 12,000 crore at less than 9 per cent interest.