State govt defends award of contracts to Hyderabad firm

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By Our Reporter

SHILLONG, May 19: Despite facing intense heat over allocation of projects worth over Rs 1,900 crore to the Hyderabad-based BAC Infratech Pvt. Ltd., the state government on Tuesday defended the move, saying all due tendering process were followed.
Cabinet Minister and MDA spokesperson Wailadmiki Shylla said the government followed established tender procedures.
Responding to The Shillong Times report, the minister said that specific eligibility conditions, including technical credentials and experience, governed all infrastructure tenders.
He said that the government could not arbitrarily choose companies for project allotment, as the bidding process remained open to all eligible participants.
“It is not like we choose whoever we like. Certain rules and procedures are followed,” Shylla said.
He further stated that the government could not frame tender rules in a manner that would selectively favour or exclude any company from participating in the process.
The PHE Department also denied allegations of any favouritism to BAC Infratech for executing its project in the state
The PHED, in its clarification, stated that the allegation that BAC Infratech received preferential treatment in the award of PHE projects in Meghalaya, thereby denying opportunities to local contractors, is “incorrect and unsupported by facts.”
According to the PHED, all tenders are floated strictly in accordance with established norms and procurement rules through competitive domestic bidding procedures. It said contractors are selected based on technical expertise, experience, operational capability, and financial capacity, particularly in the case of high-value projects.
The department further pointed out that local contractors have been awarded a substantial number of works under various schemes. It informed that Jal Jeevan Mission (JJM) projects worth Rs 6,739.1409 crore, covering 3,762 stand-alone schemes along with piped water supply projects for schools, Anganwadi Centres, and other institutions amounting to Rs 18.657 crore, have been distributed among several local contractors and firms.
The PHED stated that records clearly show that works were not awarded exclusively or disproportionately to any single firm. It also clarified that major projects funded under schemes such as JJM, JICA, AMRUT 2.0, and NESIDS-OTRI are required to be executed on a turnkey or EPC basis as per mandatory tender conditions.
The department explained that under the turnkey or EPC model, contractors are responsible for the entire project cycle, including design, execution, and handing over of completed infrastructure. It added that financial soundness is therefore an essential requirement since contractors must be capable of managing supply chains, absorbing delays, and financing works before reimbursements are released.
The PHED stated that BAC Infratech, like any other eligible company or local contractor, is entitled to participate in tenders floated by the department. However, participation does not guarantee award of work, which depends entirely on fulfilment of eligibility criteria and compliance with tender conditions.
Rejecting allegations of favouritism, the department maintained that all contracts are awarded through due process and on the basis of prescribed evaluation criteria. It categorically denied any bias or lack of transparency in its procurement process.

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