Harish Rao cites minus 12 per cent bid as proof of irregularities in Singareni tenders

BRS leader T Harish Rao alleged that a contractors’ syndicate linked to the ruling Congress was involved in irregularities in Singareni Collieries’ overburden tenders. He demanded scrapping of the site visit certificate rule and a probe into the tender process

Hyderabad: BRSLP deputy leader T Harish Rao said the involvement of a contractors’ syndicate linked to the ruling Congress in large-scale irregularities in the overburden (OB) tenders of Singareni Collieries Company Limited (SCCL) has been exposed. He cited the recent tender at Srirampur as evidence after it was closed at a minus 12 per cent bid (lower than the tender price), against the 10 per cent excess price claimed by the contractors’ syndicate in recent months.

In a statement, Harish Rao said the financial bid for the SRP OC-II tender was postponed seven times after the technical bid, which was unprecedented. The bid was finalised only after sustained protests by the BRS, exposing the inflated pricing of tenders. This led to the first negative bid recorded in Singareni after the new tender rules were introduced.

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He stated that the State government had brought in the Site Visit Certificate condition to control bidding and allow selected contractors to form a syndicate. He said the rule enabled advance identification of bidders, reducing competition and resulting in tenders being awarded at higher rates, sometimes 7 to 10 per cent above estimates.

The former Minister said earlier online tenders used to close at lower rates, ranging from minus 7 to minus 20 per cent, which saved the SCCL large amounts. However, he said the system changed after the Congress came to power. He said delays in OB works due to tender issues had affected coal production, forcing the State to buy electricity from the open market at higher prices.

According to Harish Rao, the fall in coal output could reduce Singareni’s profits and impact workers’ bonuses. He demanded that the site visit certificate rule be scrapped, tenders be conducted transparently and the alleged contractors’ syndicate be investigated. He warned that the BRS would continue its agitation if Singareni was used for political commissions.