Contract not finalised, AP Govt complex in Amaravati in limbo

Construction of an interim government complex (temporary Secretariat) in Andhra Pradesh new capital region of Amaravati is caught in a stalemate as the project implementing agency - Capital Region Development Authority - has not been able to finalise the contract yet.
This puts a question mark on the possibility of shifting the AP government's base from Hyderabad by the proposed date of June 30.
A foundation stone laying ceremony slated for today was put off indefinitely.
Two mega firms - L&T and Shapoorji Pallonji - are in the final race to bag the contract but the bidding process is stuck as they quoted prices higher than the benchmark fixed by the government.

The government's original idea was to finalise the tenders and award the contract by February 10 so that the construction work could be launched immediately.
The state government wants to shift at least major departments (that directly deal with public) to Amaravati region by the end of June this year.

While Chief Minister Chandrababu Naidu and his Cabinet colleagues have been functioning from the temporary offices in Vijayawada city, various other departments continue to work from Hyderabad, the common capital.
"A lot of costs are involved in this, not just for the government but also for the citizens. People from far off places like Srikakulam and Anantapuramu are still forced to go to Hyderabad for getting works done. Also, with the scattered set up now, the decision making and implementation are also affected," a top official of CRDA pointed out.

The government fixed Rs 3,000 per sqft as construction cost and set aside Rs 180 crore but the two firms were said to have quoted a price ranging between Rs 4000 to Rs 4200 for different blocks.
As per the norms, the government could allow excess rate only upto Rs 3150 per sqft and as such the tenders could not be finalised.
Accordingly, Municipal Administration Minister P Narayana
and Municipal Secretary (CRDA) Ajay Jain held talks with L&T and Shapoorji Pallonji but could not end the stalemate.
The issue was supposed to be referred to the Chief Minister yesterday but that did not happen.

"It is now for the government to take a decision on the project cost. It is evaluating various factors now and a decision will be taken soon," CRDA Commissioner N Srikant told