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BMC eases tender conditions for CC roads; RPS Infraprojects wins INR 1,566 crore project

Synopsis

Mumbai's Brihanmumbai Municipal Corporation (BMC) has relaxed its cement concrete (CC) road tender conditions for the second phase, moving away from 2023's stringent requirements. This shift has allowed previously ineligible companies, such as RPS Infraprojects, to qualify. RPS Infraprojects, once blacklisted in 2016, has now secured a significant INR 1,566 crore project in the city's western suburbs. The new criteria include relaxed experience requirements and a ten-year lookback period. Critics argue these changes could compromise tender integrity, while BMC believes the revisions will foster greater competition and potentially lower costs.

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Mumbai's Brihanmumbai Municipal Corporation (BMC) has introduced relaxed conditions for its second phase of cement concrete (CC) road tenders, marking a shift from the stringent requirements of 2023. This adjustment has opened the door for several companies previously deemed ineligible under the stricter 2023 criteria.

One notable recipient of the new tender conditions is RPS Infraprojects, a company previously blacklisted in 2016 due to its involvement in a BMC road scam. Although its blacklisting was reduced to three years, which ended in 2019, RPS Infraprojects has now secured a substantial INR 1,566 crore CC road project in Mumbai's western suburbs.

In 2023, BMC imposed rigorous tender requirements to exclude contractors with questionable histories. The conditions included stringent experience criteria, demanding that contractors demonstrate substantial prior work of similar scope. However, the current tenders have relaxed these requirements. The experience criteria have been adjusted to allow contractors to qualify with less extensive previous work, and the timeframe for considering prior projects has been extended from seven to ten years.

A BMC official explained that these changes were made through a corrigendum to make the tender process more inclusive. Previously, bidders needed to have completed significant projects to qualify. Now, they only need to demonstrate experience in projects that amount to 20% of the current project's estimated cost, and show cumulative experience equal to 100% of the current project's value over the past ten years.

RPS Infraprojects has defended the changes, stating that the new conditions align with norms followed by the National Highways Authority of India (NHAI) and the Union Ministry of Road Transport & Highways (MoRTH). The company argued that the relaxed conditions have led to a more competitive bidding process, benefiting the overall tendering environment.

Critics have raised concerns about the relaxation of tender conditions, suggesting it could undermine the integrity of the tendering process. BMC's decision to ease conditions has been viewed as a move to attract more competition and potentially reduce costs, but it has also led to debates about whether these changes might allow less reputable companies to participate in major projects.

Overall, the revised tender conditions reflect a broader trend towards adjusting procurement practices to balance competition and qualification criteria, with the aim of improving the efficiency and fairness of the tendering process.

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