Thane-Bhayandar mega projects: Days after scrapping tenders, MMRDA seeks details of L&T’s ‘Rs 3,000 crore lower’ bid

The L&T had claimed before the SC that compared to Megha Engineering and Infrastructure Ltd (MEIL) which was declared as the lowest bidder for both the projects, its price bid was almost Rs 2,521 crore less in case of the tunnel project, and Rs 609 crore less for the elevated road project.

According to sources, the financial estimates from L&T from its earlier bid will play a crucial role in the fresh tendering process the MMRDA plans to initiate.

They said that the “sanctity of the sealed bid process was compromised”, since L&T voluntarily revealed its bid in court.

The two projects are proposed to link Thane with Mira-Bhayandar and are part of an extension of the Mumbai Coastal Road project.

The first project, estimated at Rs 8,000 crore, is a 5-km twin tunnel of 14.6-metre diameter, connecting Gaimukh near the mouth of Vasai Creek in Mira-Bhayandar to the Fountain Hotel junction at Shilphata in Thane. The second project, with estimated cost of Rs 6,000 crore is a 9.8-km elevated creek road bridge, will connect Bhayandar with Ghodbunder Road in Thane.

The MMRDA, in its June 10 communication made through its Superintendent Engineer, referred to proceedings before the Supreme Court bench led by Chief Justice of India Bhushan R Gavai, through which the company had challenged May 20 orders passed by the Bombay High Court.

The vacation bench of the HC had refused relief to L&T on its pleas which claimed that the MMRDA had decided to open financial bids for the two projects by excluding L&T, prompting it to approach SC.

On May 29, the SC, after perusing L &T’s disclosure, had warned the MMRDA that its failure to carry out re-tendering process might lead to court to stay the tenders in question.

The next day, the SC noted that MMRDA  has “fairly” submitted that the state has decided to scrap the entire tender process “in larger public interest”, after which the court disposed of L&T’s appeal as “infructuous”.

In a press statement issued on the same day, MMRDA had stated that it was “actively considering a downward revision of the base cost by approximately Rs 3,000 crore, based on price quotations disclosed during the proceedings, to ensure optimal use of public funds”.

Taking it further, the MMRDA in its June 10 letter claimed that L&T had “voluntarily/unilaterally disclosed its financial bids submitted to MMRDA as a part of the tender process” before SC.

The disclosure had claimed L&T’s price bids were significantly lower than those of other responsive bidders. The L&T had quoted Rs. 5,554 crore for the elevated road project and Rs. 6,498 crore for the road tunnel project.

The authority said that while it “defended confidentiality and legal validity of technical evaluation process, in the spirit of transparency and larger public interest” before the Supreme Court, it was “prudent to re-examine the L&T’s estimates”, therefore “voluntarily proposed to scrap tender process” and “to re-tender with appropriate revision of the base price of the projects.”

The MMRDA said that it was requesting L&T to provide within seven working days the detailed financial estimates/price bids submitted by it for both the projects, to “ensure completeness of the bid records”.

The development authority for the MMR region also sought from L&T the supporting calculation sheets or explanatory notes that were part of its financial bid, along with rate analysis and detailed justification.