'PST not blacklisted during bid submission; NHAI awarded tenders after 2021'

CHENNAI: The state government on Tuesday defended the award of the Fintech City project tenders to M/s PST Constructions and said that the firm was not blacklisted on the day of submission of the bid and during the technical evaluation. The government also said that the construction firm was awarded tenders by the NHAI controlled by the union government after 2021.

In a clarification statement issued Tuesday, the government said that the e-tender for the Fintech City Infrastructure works was floated on January 1, 2023 and four bids were received. During technical evaluation, it came to the notice that certain complaints were received by TNUHDB regarding the quality of construction of 864 EWS Tenements (Stilt+9 Floors) at K.P.Park, Phase I by the Contractor M/s. PST Engineering Construction, the clarification said, adding that a show cause notice to cancel/suspend the registration of the contractors was issued by Tamil Nadu Urban Habitat Development Board (TNUHDB).

Citing the interim injunction granted by the Madras High Court on December 2, 2021 for the show cause notice against the firm, the state government said, "The stay on the show cause notice was still in force and hence the firm was not blacklisted on the day of submission of the bid as well as during the evaluation."

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Reasoning that the provisions of the Transparency in Tenders Act, Rules and bid documents provide for disqualifying a bidder only if the entity was found to be blacklisted and hence the said bidder (PST constructions) was found eligible in the technical evaluation, along with two other bidders, the government said that the work has been awarded to the lowest bidder, M/s. PST Engineering Construction at Rs.82,87,43,552 including GST which is 16.34% less than the department estimate, by TIDCO after the financial bids of the three bidders were opened and discussions about workability of the prices.

Asserting that the entire e-tendering process and its results were available on the government website and tender, the government said that the tender process was open and fair and carried out strictly under the conditions set out in Transparency in Tenders Act and Rules.

Pointing out that the e-tender for the Fintech tower, a high rise building with a built-up space of 5.6 lakhs sq. ft., was awarded to M/s. URC Construction Private Ltd, Bangalore for Rs.151.55 crore, including GST which was 11.64% less than the Department Estimate on June 13, 2023, the state government argued that the fair participation and competition are exemplified by the fact that both the tenders have attracted very competitive quotes lower than the estimates, thus resulting in a savings of Rs.36.15 crores to TIDCO.

The government, which was criticized by the state BJP president K Annamalai on the issue, said that M/s PST Engineering Construction was awarded works in various departments after 2021, including the six-laning of the Tuticorin Port Road section of NH-7A (new NH-138) on EPC mode by the National Highways Authority on India on March 31, 2023 at a cost of Rs.130.20 Crore.