Transparent bidding cuts Tamil Nadu project costs by up to 30%

The Tamil Nadu government has overhauled the Public Works and Highways departments as part of a crackdown on systemic corruption, leading to project costs falling by up to 30 per cent, Minister for Public Works and Sports Development Aadhav Arjuna said on Friday, according to news agency Press Trust of India.

Arjuna said transparent bidding had ended politically motivated tender allocations and the use of ‘benami’ entities, while new rules had been introduced for project approvals, road construction, contractor accountability and government buildings.

Addressing a press conference in Chennai, the minister said the system of fixed and politically influenced tender allocations, which had prevailed for 15 to 20 years, had ended.

“Today, because we have opened up the system to transparent bidding, tenders are fetching bids that are 25 to 30 per cent below the estimated costs. This massive leakage is now plugged, and the saved money is returning directly to the government treasury,” he said.

Several complaints about alleged past malpractices had been sent to the Directorate of Vigilance and Anti-Corruption, Arjuna told PTI. He alleged that a large road patchwork scam had taken place just before the previous Assembly elections.

“While Rs 500 crore was typically spent annually on patchworks, suddenly Rs 2,200 to Rs 2,500 crore was allocated right before the elections. Work was split into small Rs 10 lakh chunks to avoid strict tender norms. This was a massive scam, and the DVAC is looking into it,” he alleged.

Arjuna said the anti-corruption drive had also covered internal administration. Employee transfers, which he said earlier involved bribes of Rs 25 lakh to Rs 50 lakh for lower-level engineering posts, were now being carried out transparently without financial demands.

The minister also accused the previous government of issuing tenders before acquiring land or securing approvals, resulting in delays lasting several years. He announced that no tender would now be issued before land acquisition, detailed project reports and environmental, Directorate of Town and Country Planning and Chennai Metropolitan Development Authority clearances were completed.

“We cannot afford to have a 36-month project drag on for eight years while the contractor sits on government funds without the land being available,” he said. Detailed project reports will also be published on government websites for five days for public review before tenders are finalised.

The government is changing its approach to public buildings to make better use of expensive urban land. Arjuna said new government hospitals and collectorates would fully use the permitted floor space instead of being limited to shorter structures.

“If private IT parks can build 20 floors and accommodate thousands comfortably, why should government offices be restricted to G+3 or G+4? With the Chief Minister's approval, new buildings will go up to G+14 floors, built with international architectural standards to serve the public for the next 75 years,” he said.

The department has also scrapped ad hoc road patchwork. Under the new policy, contractors must guarantee the quality and maintenance of roads for five years. They must also remove old road layers before laying new ones to prevent road levels from rising and rainwater entering adjoining homes.

Projects will now have strict six-month targets. “If a contractor fails to meet the target, the tender will be immediately cancelled, and the company will be blacklisted. There will be no political pressure from our side, but contractors must deliver quality on time,” Arjuna said.

The reforms are aimed at making tenders transparent, preventing delays and cost overruns, improving road quality and ensuring that contractors complete public infrastructure projects on schedule, the minister said.- Ends