Tata Projects is the frontrunner in Parliament redevelopment project

At Rs 861.9 crore, Tata's bid is lower than L&T's Rs 865 crore

Industrial infrastructure firm Tata Projects Ltd is likely to bag the  government’s ambitious Parliament redevelopment project with its lowest bid.  Sources said the bids were opened on Wednesday to find a close fight between two Mumbai-headquartered firms—Tata Projects at Rs 861.9 crore against L&T’s Rs 865 crore.      

The Parliament construction project, expected to be completed by the first half of 2022–before India’s 75th Independence Day–had attracted many construction firms, but the bids came from only two companies.

“Since Tata’s bid is lower, it is likely that the project will go to them after due process and evaluation,” said an official privy to the developments.

The final award will take some time. After primary checks, the bids will go to the bid committee comprising officials of the Ministry of Housing and Urban Affairs (MoHUA) and Central Public Works Department (CPWD). Next, the bids will be evaluated by the expenditure finance committee and other government departments. “The entire process may take close to three weeks and an official announcement may come only after that,”according to an official at the MoHUA.

Incorporated in 1979 at Secunderabad (Telangana), Tata Projects has been involved in some high profile construction ventures. In 2017, Tata Projects had won a part of the Mumbai Trans Harbour Link contract along with Daewoo. L&T along with IHI Corp had bagged a bigger stretch of the project to construct a bridge between Navi Mumbai and Mumbai.

While a Tata Projects spokesperson declined to comment, sources said the Parliament project would be a big step in the company's plan to emerge as a large infrastructure company. In the last few years, it has also worked in several Metro rail projects including in Delhi, Mumbai and Lucknow. Although the company, led by Banmali Agarwala, took the joint venture (JV) route in the past to build execution capability in new segments, it plans to undertake more independent projects. The company wants to bring all construction companies including Tata Realty and Infrastructure Ltd under a single umbrella. In 2019, TPL revenues were pegged at Rs 13,418 crore and profit at Rs 244 crore.

A new Parliament building is part of the Centre’s grand plan to revamp the  central vista—the three-kilometre stretch between India Gate and Rashtrapati Bhawan on Raisina Hill. The CPWD has already finalised the architecture firm, with the deadline for the entire project set at 2024. The project involves setting up of a central secretariat complex, housing all central government departments and ministries, and redeveloping the old Parliament building or setting up a new structure.

While the deadline for redevelopment of the central vista is November 2021, the new Parliament building is expected to be ready by March 2022. The third phase of the project – setting up a central secretariat complex – is expected to be completed two years later.

The blueprint for the project by Ahmedabad-based architecture firm HCP Design, Planning & Management Pvt Ltd (HCPDPM) has already been approved. According to Bimal Patel, head of HCPDPM, the project is in line with the original plan created by the architect of modern Delhi,  Edwin Lutyens. Consolidating, rationalising and synergising government functions through better office infrastructure is at the heart of this project, he said.

Apart from accommodating all ministries, bringing the PM and Vice-President’s residences within the central vista are among the key facets.

To modernise the Parliament complex, a triangular structure will be set up on a 13-acre plot, which is currently used for car parking. Besides a Lok Sabha hall three times the size of the current one, a Rajya Sabha hall and a lounge will also come up.

Unlike the current Parliament, the Lok Sabha in the new one could be used for joint sessions. With a regular seating capacity of 900, divided into 450 pairs of seating units, it has been designed to accommodate 1,350 for joint sessions.

Even as the project was envisaged before Covid-19, the new Parliament building will have more room for MPs. Modelled on Egyptian Parliament, the Lok Sabha hall will provide 50 per cent more space to each member.