Govt shortlists construction majors

Pending irrigation Projects worth Rs 26,000 cr to be split into packages of Rs 100-150 cr

The state government has shortlisted 20-odd big construction companies to execute its ambitious five-year action plan pertaining to the completion of all pending irrigation projects.

The list include all the major companies like L&T which have the requisite experience in executing big projects.

These project works would be taken up in big packages, each with a size of Rs 100 crore to Rs 150 crore. About 50-55 packages are being prepared for the current year, which would be ready by this fortnight, according to reliable government sources.

Keeping in line with the electoral promises made, the new Congress government had announced in its first annual Budget that it would complete 26 irrigation projects at an estimated cost of Rs 26,000 crore in the next five years.

The other four major projects costing about Rs 20,000 crore will be initiated during the same period and will achieve financial closure, but may not be completed in a five-year time frame.

Taking into account the magnitude of the whole plan, the government has already decided to execute them as turn-key projects, which means, all the pre-construction work including design "� so far handled by the engineering department of the irrigation department "� would be handed over to these construction companies.

The irrigation department would undertake design and other related exercises for comparison related purposes, sources said.

Chief minister Y S Rajasekhara Reddy, who has been very vocal about the need to develop the irrigation sector, is apparently laying great emphasis in pushing the projects.

Keeping pace with the expectations and directions of the political leadership, the department officials have been busy finalising the project packages for the current year.

The size of the work packages have been intentionally kept at a higher level by the government, so as to deal with only big companies to ensure smooth and speedy execution of the projects keeping in view of the five-year time period.

"The government does not want to deal with many small players which would create unnecessary problems besides affecting work and will lead to accountability related issues. This burden, if we say so, could be effectively transferred to the big companies which in turn will enlist sub-contractors for the execution of individual components of these packages on their own," a senior government official pointed out.

All these measures, including the route of shortlisting the companies instead of going for competitive bidding have been taken in view of the shorter time period prescribed for the completion of these projects, officials insisted.

In political terms, the government can save itself from the allegations of favouritism and corruption by not appointing or dealing with contractors on its own, and leave it to the bigger engineering players to negotiate with them.

For all these projects, the state government has been taking the sole responsibility of arranging funding tie-ups with various lending agencies.

"The response is so overwhelming that we are in a position to pick and chose the lending agencies," a senior official commented.

According to sources, the government may go all out on giving vendor credit for those companies which are coming forward to support these projects by supplying their equipment, like pump-sets for the lift irrigation projects among others.