₹71-Lakh Monthly Extension Blows Lid Off AMC Water Department’s Tender Delay Game
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Summarized by AI; it may make mistakes. Check important info
A fresh controversy has rocked the Water Operation and Maintenance Department of the Ahmedabad Municipal Corporation (AMC), after top officials and political leaders greenlit a proposal to keep seven legacy agencies on the payroll to clean the city’s 186 water distribution centres.
Despite their multi-crore contracts expiring on June 30, 2026, the existing contractors have been granted an indefinite extension—pocketing a staggering ₹71.58 lakh per month—after civic officials intentionally delayed floating a new tender.
Tender Delays Hand Legacy Syndicate ₹71.58 Lakh Monthly Windfall
Under standard civic procurement rules, the AMC must initiate fresh tender proceedings well before an existing contract lapses to ensure competitive bidding and smooth transitions. However, senior officials in the water supply department sat on the tender process throughout June, missing the crucial pre-July deadline.
With the process stalled, the Water Supply Committee stepped in to approve an interim extension. Water Supply Committee Chairman Dharamshi Desai cleared the proposal, allowing the seven outgoing agencies to continue holding exclusive maintenance rights over the 186 distribution hubs until a new panel is finalized.
Defending the decision, Desai claimed the move was necessary to prevent any interruption in the city's municipal water distribution network, assuring that the previous contractors were simply being paid to maintain daily operations.
Revealed: The 7 Agencies Retaining the Multi-Crore AMC Contract
The seven firms benefiting from the monthly ₹71.58-lakh payout include:
- Shivam Engineers
- Aqua Gaseous Control
- V.B. Chaudhary
- Mana Techno Corporation
- Riddhi Engineers
- Vikas Electrical
- Mahima Industries
Civic insiders reveal that this artificial delay is a rehearsed tactic within the municipal corporation. Bureaucrats allegedly hold back fresh tenders or insert overly complex eligibility conditions to deter new vendors from participating.
This creates a self-manufactured operational emergency, allowing officials to grant 3-to-6-month extensions to legacy contractors under the guise of preventing service disruptions. Questions are now being raised over why BJP civic leaders approved the proposal without demanding accountability from officials for the deliberate delay.
