Reverse tenders helped save ₹2,000 crore: Jagan

‘We will emerge as a model for others on this front’

Chief Minister Y.S. Jagan Mohan Reddy said on Wednesday that his government could save ₹2,000 crore in various projects, including the Polavaram multi-purpose dam, in the last seven months, and exuded confidence that it was going to emerge as a model for other States.

Responding to a question by The Hindu Group (THG) Chairman N. Ram at the conclave on ‘Excellence in Education’ here, Mr. Jagan Mohan Reddy said, “A sum of ₹830 crore was saved in the Polavaram project and ₹400 crore in the AP-TIDCO housing scheme for the weaker sections as the government cancelled the previous tenders and called for reverse tenders.”

Accountability

In a significant step towards enhancing transparency and accountability, the government brought the A.P. Infrastructure (Transparency through Judicial Preview) Act, the Chief Minister said.

“Under this system, all tenders costing more than ₹100 crore are sent to a judge, who puts them in public domain for seven days. During that period, anyone, even the critics, are free to suggest changes in the contractual terms, which were hitherto tailor-made to suit a few companies,” he said.

Fresh tenders were then invited by displaying the amount quoted by the original lowest bidder without mentioning the company’s name. Devoid of any scope for bribes, it helped in lowering the costs. Even the companies that participated in the initial bidding could again throw their hat into the ring, the Chief Minister said.

Earlier, Mr. Ram sought to know what was Mr. Jagan Mohan Reddy’s experience with reverse tenders, which the latter claimed to have yielded up to 20% savings in projects. He appreciated the fact that the government saved public money through reverse tenders.

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