Rs 643crore Phina Singh Canal project in limbo amid row over tendering process

Nurpur’s ambitious Rs 643-crore Phina Singh Canal Multipurpose Project, which recently received its second installment of Rs 55.51 crore in Central funds, now faces uncertainty amid allegations by opposition BJP leaders regarding changes in the tendering process undertaken by the Jal Shakti Department (JSD), the executing agency of this long-delayed project.

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The project, whose foundation stone was laid by then Chief Minister Prem Kumar Dhumal in October 2011, has already been stalled for the past 14 years. Its future now appears at risk as the ongoing e-tendering process — reaching its final stage and scheduled to be awarded to one of five shortlisted construction companies by the end of this month — has been temporarily suspended by the JSD.

Opposition BJP leaders, including former Chief Minister Jairam Thakur, have raised concerns about the integrity of the tendering process. They allege that the conditions for awarding the tender were deliberately altered to exclude many potential bidders and favour a particular construction company. The estimated cost of the tender in question is Rs 294 crore for the construction of the concrete gravity dam and distributaries.

According to sources, the JSD initiated the e-tendering process in April this year, even before receiving the second Central installment. Tenders were opened on May 26, with five construction companies participating. The zonal-level bid committee scrutinised the documents and eligibility of the bidders on June 2 and the technical evaluation committee approved all five bidders on June 12. Financial bids were then opened, with the lowest bid coming in at Rs 304 crore — Rs 10 crore above the department’s estimated cost. The department was in negotiations with the lowest bidder to bring the amount down to the estimated Rs 294 crore before finalising the award.

However, the process hit a roadblock after opposition allegations, particularly objections to the exclusion of Joint Ventures (JVs) from the bidding process. A senior JSD official clarified that a government notification dated July 22, 2013, barred JVs from such projects — a policy still in force. This rule was previously challenged in the High Court and upheld. Moreover, the JSD has adopted the Central Public Works Department (CPWD) manual, which also disallows Joint Ventures under its 2/3 bid system.

When contacted, Deputy Chief Minister Mukesh Agnihotri — who also holds the Jal Shakti portfolio — strongly denied any wrongdoing or change in tendering conditions. He emphasised that the entire process has been conducted transparently and noted that the previous BJP government (2017-2022) had followed the same non-JV policy. Agnihotri dismissed the controversy as internal corporate rivalry among construction companies, labelling the allegations as baseless rumours.