Contractors' high rates to de-silting tenders put BMC in a soup

The de-silting scam has cost the BMC dearly. In what opposition parties are calling a bid to jeopardise the civic body's de-silting operations, contractors have quoted rates close to 300% above its estimates.

In fresh tenders floated by the BMC, contractors have demanded close to a whopping Rs6,000 per ton to remove silt from the city's drains against the BMC's estimate of Rs1,600 per ton. With the contractors quoting such rates, the BMC is likely to scrap the tenders once again and call for fresh ones.

dna had last week reported that the BMC received a tepid response for its de-silting tenders. Around eight contractors bid for only 23 of the 51 de-silting contracts that were floated, while 18 tenders had no takers. Officials said that of the 23 tenders, four have received single bidders while the remaining contractors have bid unusually high rates. All 24 contractors booked in the scam were barred from bidding in the new tenders.

While the cost of tenders is pegged at Rs140 crore just like last year, the amount of silt the contractors will have to remove has been cut by around 60%. Despite the already high estimate, contractors have bid over 300% above the BMC estimate.

"These contractors have created a monopoly and now want to loot the BMC. The BMC must relax the tender conditions so that new contractors get a chance. De-silting is not a technical job, so any one can do it. We will protest if the BMC gives them contracts at such high rates," said Congress legislator Aslam Shaikh.

Shaikh has written to BMC chief Ajoy Mehta in this regard. "If the tender conditions are relaxed, close to 200 new contractors will be eligible. The rates will come down only then. The existing contractors have created a cartel and want to ensure that the BMC's tenders fail."

With contractors demanding high rates, the BMC is all set to re-float the tenders. "We will call for a meeting of the tender committee and then negotiate with the bidders. If they don't agree to do the work at a reasonable rate, we will have no option but to re-float the tenders. We will re-float the ones where there is only one bidder," said LS Vhatkar, chief engineer, stormwater drains department.

Following the scam, the existing contracts were scrapped and the BMC floated fresh tenders for cleaning the Mithi river and minor and major drains all over the city. Officials said contractors had bid high rates even for minor drains which were not under the scanner.

The high bidders
Kamal Enterprise (339% above)
Armstrong (255% above)
Riddhi Enterprises and Anas Infra (249% above)
HV Construction (181% above)
Magnum Construction (86% above)
NA Construction (39% above)
SNB Infrastructure (14% above)