STP bid stuns VMC, higher by 68 crore

Vadodara: A sewage treatment plant (STP) planned in the Tarsali area of the city will cost Vadodara Municipal Corporation (VMC) Rs 195 crore instead of the estimated cost of Rs 127 crore. Contractors have expressed inability to work below these rates.
VMC had planned the 100MLD capacity STP in Tarsali as it is a developing area and real estate development has already started affecting the sewage treatment capacity there. Also, the civic body has drawn flak from the National Green Tribunal (NGT) over its sewage treatment facilities. The new STP at Tarsali was to replace the existing 52MLD capacity plant there. The existing plant was to be brought down.
A proposal put before the VMC standing committee states that no contractor was found eligible in the pre-qualification bids in the first attempt. In the second attempt, two contractors qualified and submitted price bids. However, one of them quoted Rs 203 crore for the work while another quoted Rs 198 crore. After negotiations, the contractor whose bid was the lowest agreed to further decrease his price to Rs 195 crore.