The Times of India           07.10.2013 

Now, e-tenders for works above Rs 5 lakh

THIRUVANANTHAPURAM: The state government has lowered the limit of project estimate for local bodies while issuing e-tenders. Till now the local bodies were allowed to go for e-tenders only for projects with an estimate above Rs 25 lakh. The local self government department has issued an order which brings down the limit to Rs 5 lakh.

The move is part of the government's decision to bust the nexus run by contractors who plan together to quote single bids for various works thereby causing inordinate delay in timely implementation of projects. The norms do not allow local bodies to award works based on single bids and when contractors quote single bids for works, the officials have to conduct re-tendering till competitive bids are raised, which results in the delay.

"With e-tendering,transparency and accuracy can also be ensured," said M K Muneer, minister for panchayats and social welfare. The government is also planning to prepare a data bank of all the old tenders in each local body and track down the cost-escalation that has been resulted due to various reasons.

"This is being done to ensure that the lapses do not occur again. The first priority will be to popularise the use of e-tenders. Even a common man can follow the procedures of awarding a work to a contractor once this system gets effective," the minister added.

However, panchayat office-bearers are slightly apprehensive about reducing the limit. According to some panchayat representatives, e-tendering would cause a contractor to quote low rates for work and this will be compensated by compromising on material cost. "Eventually the quality of work will be affected. In normal procedure, when a contractor quotes a low rate, he won't be encouraged, since we would know the past track record of the person. In e-tendering, monitoring the past work record of a contractor will not be an easy task," said Rufus Daniel, vice-president, Thiruvananthapuram district panchayat.

The system will be made mandatory for all panchayats from next financial year.

INFO

• e-tenders can be called for all works above 5 lakhs

• Zero balance account to be opened for online transaction of earnest money deposit

• System to be made mandatory for all local bodies from next financial year