AMC approves storm water line projects worth ₹75 cr, contractor offers to work 46% below estimated cost

The Amdavad Municipal Corporation (AMC)’s water committee has approved two major proposals for laying 1800 mm diameter storm water lines using the micro-tunneling method. The contracts are for water lines from Anjali Crossroads to the downstream of Vasna Barrage, and another from Manekbag Crossroads to Anjali Crossroads in Navrangpura ward.

In a rare instance, the contractor, Trenchless Engineering, has expressed readiness to execute the projects worth approximately ₹75 crore at nearly 46% below the estimated cost.

According to the proposal, the stretch from Anjali Crossroads to Vasna Barrage downstream will be completed for ₹38.4 crore, which is 45.90% below the estimated cost, while the Manekbag Crossroads to Anjali Crossroads work will be carried out for ₹37.11 crore — 46.20% below the estimate. 

Officials noted that such a low quotation compared to the estimated value has not been seen in recent years.

The contractor cited the availability of in-house micro-tunneling machines and the recent reduction in GST rates on materials such as cement as reasons for being able to take up the work at a lower cost.

However, with such a low estimate proposed, speculations about the quality of the work were raised. The committee chairperson stated that a written bond would be taken from the contractor to ensure quality work.

Corporation officials pointed out that, unlike most proposals where contractors quote above the estimated cost, this is one of the rare cases where the bid has come significantly lower.

The ruling party representatives defended the decision, saying that since the contractor already possesses six micro-tunneling machines, the project cost is reduced as no additional machinery investment is required.