Retender for Guindy infrastructure project likely

Guindy Industrial Estate Infrastructure Upgradation Company, the special purpose vehicle (SPV) floated for the upgradation of infrastructure in the Thiru-Vi-Ka Industrial Estate, Guindy, may have to start the tender process again for the upgradation project as the final bid was found 60 per cent higher than the SPV's expectations.

The SPV is currently engaged in a discussion with the contractor to find a solution. If nothing comes through, it is likely to invite bids for the project, K Gopalakrishnan, president of the Industrial Estate Manufacturers' Association, Guindy, told Business Standard.

The SPV floated tenders in December 2005 for the Rs 12.5 crore public-private partnership project to completely revamp the infrastructure in Guindy Industrial Estate and convert it into a developed estate.

It received bids from 16 companies and two were short-listed for the project. Out of this, one contractor was rejected for not qualifying technically. However, the bid of the contractor who qualified to take up the work was reported to be 60 per cent higher than the estimates.

The project was supposed to take off by the end of this month or early March. It may now be delayed by a month. Some of the works, however, are expected to start as soon as the Sewage Board of Metro Water takes up the sewage works in the industrial estate, said Gopalakrishnan.

The infrastructure upgradation project includes widening and strengthening of existing roads of about 21.50 km within the industrial estate, construction of cross drainage works and storm water drains, and street lighting. The contractor should also maintain the improved facility for a period of five years.

Of the Rs 12.5 crore to be spent for this integrated infrastructure development programme, the central and state governments will pump in Rs 2 crore each while the unit holders will provide Rs 3.5 crore.

The Chennai Corporation has committed to provide Rs 1 crore. Additional funds will be raised through loans at low interests from financial institutions that have earmarked an 'infrastructure development fund'.

The 420-acre Guindy Industrial Estate was conceived in the late '50s as a cluster for small-scale engineering units.

The infrastructure in the estate deteriorated over a period of time and the estate was seen as a neglected area. There are about 700 units in various sectors that include engineering, leather, garments, plastics and glass among others.