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Tamil Nadu says transparent bidding cuts public project costs by up to 30 per cent

The Tamil Nadu government has changed how it awards public works and highway contracts. The minister said the aim is to end corruption, lower costs and speed up work. He also alleged a large road repair scam, which is now being probed.

Marina Beach Road,Chennai
Representative photo: Marina Beach Road,Chennai. Photo: EnrichIndegi / Wikimedia Commons, CC BY-SA 4.0

The Tamil Nadu government says it has overhauled how public works and highway projects are tendered.

The aim is to stop corruption and bring down costs.

Public Works and Sports Development Minister Aadhav Arjuna spoke at a press conference in Chennai on Friday.

He said project costs have fallen by up to 30 per cent.

Key points

  • Transparent bidding has replaced fixed, politically influenced tender allocations.
  • Tenders now come in 25 to 30 per cent below estimated costs, the minister said.
  • No tender will be issued before land, reports and clearances are ready.
  • Complaints about past malpractice are with the anti-corruption directorate.

So what changed in the tender system?

The minister said tenders were fixed for 15 to 20 years. Many were allotted based on political influence, he said.

Now, bidding is open. Arjuna said tenders are getting bids well below the estimated cost.

He said the saved money is returning to the government treasury.

TN says open bidding cuts project costs up to 30%
30%Claimed cost reduction
15-20 yearsEarlier tender period
Rs 10 lakhAlleged split patchwork work
5 daysPublic review of project reports

Graphic: News Anek, from the facts in this report

New rules also cover project approvals, road construction, contractor accountability and government buildings.

What about the corruption allegations?

Arjuna alleged a large road patchwork scam took place just before the previous Assembly elections.

He said the money allotted for patchwork suddenly rose sharply.

He said work was split into small chunks of Rs 10 lakh to avoid strict tender norms.

The Directorate of Vigilance and Anti-Corruption is looking into the matter.

These are allegations. The case is under investigation, and no finding has been made yet.

What happens next for projects and buildings?

Under the new rules, no tender will be issued before land acquisition and key clearances are complete.

Arjuna said this will stop long delays.

Detailed project reports will be published on government websites for five days for public review.

Only then will tenders be finalised.

New government hospitals and collectorates will also be allowed to use the full permitted floor space.

Arjuna said this will help make better use of costly urban land.

Explainer

What happened before

  • For 15 to 20 years, tenders were allotted in a fixed way, the minister said.
  • Earlier, tenders were issued before land was acquired or approvals were secured, causing long delays.

Why it matters

Public money spent on roads and buildings affects every citizen. The minister said the saved money is going back to the state treasury.

What to watch next

  • Detailed project reports will be put on government websites for five days for public review before tenders are finalised.
  • Complaints about past malpractice are with the Directorate of Vigilance and Anti-Corruption, which is looking into them.

Sources