Tender cancelled for 24x7 water supply in Shimla

Shimla, November 21

The controversial tender for the 24×7 high pressure water supply in Shimla has been cancelled.

Board of Directors of Shimla Jal Prabandhan Nigam Limited (SJPNL) decided to cancel the tender and float fresh tender for the project in a meeting here today. “We had sent the tender for the concurrence of the World Bank after it was approved by the Board of Directors last month. As the approval from the World Bank hasn’t come so far, it was decided to cancel the tender on technical grounds and float it again,” said SJPNL Managing Director Pankaj Lalit.

“We will write to the Election Commission of India to seek its permission to float the tender again as the model code of conduct is in place at the moment,” said Lalit.

The tender had landed in the eye of the storm ever since the SJPNL Board of Directors had approved the bid of Suez India at Rs 683 crore last month.

Challenging the award of the tender for Rs 683 crore, former mayor Sanjay Chauhan and deputy mayor Tikender Panwar had alleged that the lowest bid, including Capex (capital expenditure) and operation and maintenance costs, was nearly 33 per cent higher than the department’s estimate of the project value and it would cause a loss of over Rs 200 crore to the state exchequer.

The duo then wrote to the World Bank about the alleged irregularities in the award of the tender and also urged Chief Secretary Dhiman, who is the chairman of the SJPNL Board of Directors, to cancel the tender. “We demand an enquiry into the entire tendering process that was riddled with corruption and action against the individuals responsible,” said Chauhan.

With the cancellation of the tender, the 24×7 water supply project will get delayed. “It’s obviously going to get delayed a bit but we will try and float fresh tender at the earliest,” said Lalit. The round-the-clock water supply is one of the three components of the over Rs 1,800 crore World Bank-funded Shimla Water Supply and Sewerage Services.

Lowest bid 33% higher than estimate

Challenging the award of the tender for Rs 683 crore, former mayor Sanjay Chauhan and deputy mayor Tikender Panwar had alleged that the lowest bid, including Capex (capital expenditure) and operation and maintenance costs, was nearly 33 per cent higher than the department’s estimate of the project value and it would cause a loss of over Rs 200 crore to the state exchequer.