 "fintech")
The Tamil Nadu government has defended awarding a Rs 82.87-crore contract to PST Engineering Construction (PSTEC) for constructing Fintech City in Chennai’s Nandambakkam, saying the tendering process was transparent and the company is not blacklisted.
Chief Minister M K Stalin laid the foundation for the Fintech City building and tower on Saturday. The contract sparked a controversy as PSTEC was criticised in 2021 for alleged poor quality of construction in the apartments built for Tamil Nadu Urban Habitat Development Board in K P Park, Chennai. The Tamil Nadu Urban Habitat Development Board (TNUHDB) served a show-cause notice to suspend the registration of contractors. The company obtained a stay from the Madras High Court over the notice.
The current project relates to the infrastructure and site development of Phase I of Fintech City over 56.48 acres. PSTEC was awarded the Fintech City Development works based on e-tender procedure for Rs. 82.87 crore, which was 16.34 per cent less than a government department estimate.
“The interim stay on the show-cause notice to cancel the registration is still in force and hence the firm was not blacklisted on the day of submission of the bid as well as during the evaluation,” said a government official.
“The tender process was open and fair and carried out strictly under the conditions set out in the Transparency in Tenders Act and Rules. The participation was also open to every entity which qualifies under the conditions of the bid. The fair participation and competition are exemplified by the fact that both the tenders have attracted very competitive quotes lower than the estimates, thus resulting in a savings of Rs 36.15 crore to TIDCO,” he said, referring to a state-run agency.
The state government has said that PSTEC was awarded works in various departments after 2021, including the six-laning of the Tuticorin Port Road section of NH-7A (new NH-138) on EPC mode by the National Highways Authority of India at a cost of Rs 130.20 crore.
