The Hindu : Andhra Pradesh News : Contractors trying to form syndicates, say TDP leaders

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Tuesday, Feb 08, 2005

Andhra Pradesh

Andhra Pradesh

Contractors trying to form syndicates, say TDP leaders

By Our Staff Reporter

HYDERABAD, FEB. 7. The Telugu Desam Party claimed that some contractors were regrouping to form syndicates for the purpose of irrigation tenders.

Party leaders, M.V. Mysoora Reddy, S. Venugopalachari and S. Maruthi, told a news conference here on Monday that the award of contract to two firms to take up the two phases of Bheema lift-irrigation scheme gave credence to the view. They said the firms were awarded the contract at the expense of the Hindustan Construction Company (HCC) though they quoted Rs. 132 crore in excess. HCC had bid for both phases.

The HCC was elbowed out in the race on the ground that the software containing its quotation could not be downloaded on the last day of tendering. The firm had met the other condition of submitting the quotation on paper within the time limit but this was strangely not considered.

They alleged that only those firms, which were willing to pay five per cent commission, were enlisted to execute the projects. The firms enjoyed the freedom to inflate the prices of motors and pumpsets to project cost escalation. There was, however, no change in standard schedule rates, design nor earnest money deposit, they added.

At another press conference, TDP leaders N. Janardhan Reddy and M. Jagannatham wanted a case booked against Chidambaram Reddy under the SC/ST (Prevention of Atrocities) Act for abusing former Minister, Kadiam Srihari, by reference to his caste.

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