Date:01/12/2004 URL: http://www.thehindu.com/2004/12/01/stories/2004120110780400.htm

Andhra Pradesh

An open letter on tenders

By Our Special Correspondent

HYDERABAD, NOV. 30. The Government has issued an open letter, a leaflet to be precise, explaining to people the "truths" in the tender system adopted for implementing irrigation projects.

The letter, released in the name of the Major Irrigation Minister, Ponnala Lakshmaiah, says only two firms had met the prescribed pre-qualifications when the notification was issued for forming a panel for executing major packages. But, as the short-listing of only two would be unfair, two pre-qualifications -- ISO certification and registration in the State, were relaxed for seven firms. Finally, the panel was broad-based with nine firms with the inclusion of these seven.

In the case of medium packages, the same relaxation was given to 20 firms. The panel for this category packages was formed with 46 firms.

Honouring the High Court order, the Government, however, re-issued notifications in both cases, to further enlarge the panels. The Chief Minister, Y. S. Rajasekhara Reddy, had adopted the EPC-turnkey method for the tenders since he wanted to realise the projects fast , the letter said.

`PIL helps'

Our Staff Reporter adds

Meanwhile, the Zameen Rytu Editor, Dolendra Prasad, claimed that if it were not for the public interest petition (PIL) filed by him, contracts for all the 51 packages would have been allotted to the nine firms which were selected. Mr. Prasad told reporters that the PIL had saved Rs. 10,000 crores to Rs. 15,000 crores of public money. He said there was no role of former Chief Minister, N. Janardhan Reddy, or Congress MLAs from Nellore, Anam brothers in the filing of the suit.