Tamil Nadu - Coimbatore   

Many roadworks will wait for revision of rates

Special Correspondent

Contractors not willing to take up works

COIMBATORE: Coimbatore Corporation has decided to hold back 17 road improvement works in anticipation of revision of rates of construction materials and labour by the Government.

Resolution passed

A resolution to this effect was passed in the Corporation Council recently. It said the works, costing Rs. 2.8 crore, could not be taken up as no contractor had submitted tenders.

A total of 162 works were to be carried out at Rs. 25 crore under the Tamil Nadu Urban Local Body Roads Improvement Scheme 2005-2006. The Council had also approved these at its meeting on September 28, 2005.

Tenders were invited on December 15 and 30, 2005 and also on January 6 and 10 this year. But bids were submitted only for 46 works. Work orders were issued for these on February 13. Funds for the works were to be provided by the Corporation, as subsidy by the Government and loans from the Tamil Nadu Urban Infrastructure Financial Services Limited (TNUISFL). Totally, 25 works were to be funded by the TNUIFSL.

Fresh tenders

The Corporation had sent the proposals for the 25 works to the Government for clearance on April 5 but these could not be taken up as the Assembly elections were notified by then. Besides, the 90 days' time given to take up works since the date of bidding had elapsed. The bids had to be cancelled and fresh tenders should be invited.

However, eight other works for Rs.1.58 crore would be done soon by the Corporation itself considering the urgent need for repairs to key roads.

Cost of materials

As for the other 17 works, the Corporation would wait for the new schedule of rates to be announced by the Government. Contractors had been unwilling to take up the works saying that they would incur heavy losses as the Government-fixed rates were far too low compared to the cost of materials in the open market.

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