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After HC gaze, GMADA defers bidding for Mohali road project

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The Greater Mohali Area Development Authority (GMADA) has deferred the bidding process to allot work for its Rs 783.46-crore Mohali Next Generation Roads Programme. Under it, private players are to be offered nearly Rs 10 crore for upgrade, beautification, operation and maintenance of each kilometre of 83.4 km of existing key roads and junctions across Mohali for a 10-year concession period.Officials privy to the development told The Tribune that the last date for the submission and opening of financial bids has been extended from February 2 to 16.The move comes close on the heels of the project coming under the Punjab and Haryana High Court scanner on February 2.The court had issues notices for February 12 to the state government, GMADA, its chief engineer and the Mohali Municipal Corporation.The Tribune was the first to report on January 18 about the initiative, which immediately raised eyebrows and evoked sharp reactions. The project was subsequently challenged before the High Court by GMADA contractors and others.A Division Bench headed by Justice Lisa Gill issued notices after a petition questioned the tendering process.The petition challenges the bidding process and tender document, dated January 11, alleging that the authority has clubbed the entire GMADA area into one compact package, effectively excluding Class-I and II contractors registered with it and state government departments.The petitioners contend that the estimated project cost of about Rs 790 crore and an earnest money deposit (EMD) of around Rs 7.9 crore are beyond the financial capacity of local contractors, pushing them out of competition. They have claimed this would restrict competition and cause loss to the state exchequer.It has also been alleged that 27 already completed or ongoing works related to road upgrade, resurfacing, beautification and roadside plantation have been included again in the tender, leading to undue enrichment of prospective bidders.The petition further claims violations of Articles 39(b) and 39(c) of the Constitution and the Competition Act, 2002. The contractors have also questioned the approval process, alleging that the project was cleared at the level of the Chief Secretary, without prior approval of a detailed project report (DPR).They alleged that the absence of a joint venture provision in the tender makes it a tailor-made document favouring large companies. During the hearing, the High Court ordered the deletion of the names of the Chief Secretary and the Chief Engineer from the array of parties before issuing notices.Under the Mohali Next Generation Roads Programme, GMADA has floated e-tenders under the hybrid annuity model (HAM) to appoint a private concessionaire. The roads fall under the jurisdiction of GMADA and the Municipal Corporation, with no land acquisition proposed.A project management unit (PMU) is to assist in implementation, oversight and monitoring, while the concessionaire will be responsible for all upkeep, repairs and wear and tear during the concession period. The project has been described as the first-of-its-kind, with spending of nearly Rs 10 crore per km on existing roads for a decade-long outsourcing arrangement, a model not seen earlier in the state, leading to sustained questions over cost, duration and structure.The High Court is scheduled to hear the matter on February 12.

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