CHENNAI: The Tamil Nadu government is likely to cancel the tender awarded for the proposed elevated road project between Thiruvanmiyur and Uthandi along the East Coast Road (ECR) after authorities reportedly found that the contract value exceeded prevailing market rates.
According to sources, the 13.3-km elevated corridor project, estimated at Rs 2,100 crore, was tendered at a cost of Rs 157.89 crore per kilometre. The government is said to have initiated a review after concerns were raised over the project's valuation and allegations of irregularities in the tendering process.
Officials reportedly found that the contract had been awarded at a rate higher than the current market cost for similar infrastructure projects. Industry estimates place the prevailing construction cost for elevated corridors at around Rs 147 crore per kilometre, prompting scrutiny of the approved bid, said a Daily Thanthi report.
The project, aimed at easing traffic congestion along the busy ECR stretch between Thiruvanmiyur and Uthandi, had already entered the preliminary stages, with initial works under way. The state government had allocated Rs 2,100 crore for the scheme.
The proposed cancellation comes amid allegations that the project cost was significantly inflated. Critics had claimed that the estimated value was substantially higher than required, leading to demands for a review of the tender process.
The difference in cost has drawn attention as the ongoing Chennai–Maduravoyal elevated corridor project is being executed at an estimated Rs 147 crore per kilometre, compared to Rs 157.89 crore per kilometre for the Thiruvanmiyur–Uthandi project.
An official announcement on the fate of the tender is awaited.