NMC’s e-tendering mandate for projects over Rs3 lakh sparks political controversy

Nagpur: The Nagpur Municipal Corporation's (NMC) recent decision to make e-tendering mandatory for all development projects exceeding Rs3 lakh has sparked strong political opposition, with local MLAs questioning the municipal commissioner's authority to issue such a directive. Critics argue that the order contradicts a Maharashtra govt resolution, which mandates e-tendering only for works above Rs10 lakh.
The circular, issued by municipal commissioner and administrator Abhijeet Chaudhari, states that all projects exceeding Rs3 lakh — whether funded by NMC or the state govt — must now go through the e-tendering process. Currently, offline tenders are permitted for projects up to Rs10 lakh, with an average cost reduction of only 4-5% through negotiations. In contrast, e-tendering for projects above Rs10 lakh has led to savings of 20-30%. The new rule aims to curb irregularities, prevent project cost inflation, and bring greater financial transparency.
However, the decision has met with strong resistance from local politicians. East Nagpur MLA Krishna Khopde questioned the municipal commissioner's authority to modify a state-level policy. "In 2021, the Maharashtra govt issued a circular mandating e-tendering only for projects above Rs10 lakh, while smaller projects could continue with offline tenders. Now, the commissioner has arbitrarily reduced this threshold to Rs3 lakh. He has the authority to regulate NMC-funded projects, but he cannot unilaterally alter state policies," Khopde said.
Khopde further argued that any proposed changes to state govt regulations should be formally sent as a proposal to the govt for approval. "If the commissioner believes changes are necessary, he should recommend them to the state. Instead, he has implemented a rule that goes beyond his jurisdiction and effectively modifies a govt order applicable to the entire state," he added.
Nagpur Central MLA Pravin Datke echoed similar concerns, accusing Chaudhari of overstepping his administrative powers and alleging that previous e-tendering processes in NMC did not eliminate corruption. He argued that simply expanding e-tendering would not guarantee transparency unless systemic issues, such as project cost inflation and poor quality control, were addressed.
Meanwhile, NMC chief engineer Leena Upadhaye defended the move, asserting that the municipal commissioner has the authority to take decisions that improve governance. However, she did not clarify whether the rule would apply to projects funded through MLA and state govt allocations.
Chaudhari has already directed all civic departments and zone officers to strictly implement the new e-tendering rule. NMC has also warned contractors and officials against splitting larger projects into smaller segments to bypass the Rs3 lakh threshold.
The controversy highlights a deeper power struggle between the municipal administration and elected representatives, each claiming to act in the public interest. While NMC insists that the move will enhance financial discipline and curb manipulation, opposition from political leaders suggests that the fight over control of civic contracts is far from over.
Nagpur: The Nagpur Municipal Corporation's (NMC) recent decision to make e-tendering mandatory for all development projects exceeding Rs3 lakh has sparked strong political opposition, with local MLAs questioning the municipal commissioner's authority to issue such a directive. Critics argue that the order contradicts a Maharashtra govt resolution, which mandates e-tendering only for works above Rs10 lakh.
The circular, issued by municipal commissioner and administrator Abhijeet Chaudhari, states that all projects exceeding Rs3 lakh — whether funded by NMC or the state govt — must now go through the e-tendering process. Currently, offline tenders are permitted for projects up to Rs10 lakh, with an average cost reduction of only 4-5% through negotiations. In contrast, e-tendering for projects above Rs10 lakh has led to savings of 20-30%. The new rule aims to curb irregularities, prevent project cost inflation, and bring greater financial transparency.
However, the decision has met with strong resistance from local politicians. East Nagpur MLA Krishna Khopde questioned the municipal commissioner's authority to modify a state-level policy. "In 2021, the Maharashtra govt issued a circular mandating e-tendering only for projects above Rs10 lakh, while smaller projects could continue with offline tenders. Now, the commissioner has arbitrarily reduced this threshold to Rs3 lakh. He has the authority to regulate NMC-funded projects, but he cannot unilaterally alter state policies," Khopde said.
Khopde further argued that any proposed changes to state govt regulations should be formally sent as a proposal to the govt for approval. "If the commissioner believes changes are necessary, he should recommend them to the state. Instead, he has implemented a rule that goes beyond his jurisdiction and effectively modifies a govt order applicable to the entire state," he added.
Nagpur Central MLA Pravin Datke echoed similar concerns, accusing Chaudhari of overstepping his administrative powers and alleging that previous e-tendering processes in NMC did not eliminate corruption. He argued that simply expanding e-tendering would not guarantee transparency unless systemic issues, such as project cost inflation and poor quality control, were addressed.
Meanwhile, NMC chief engineer Leena Upadhaye defended the move, asserting that the municipal commissioner has the authority to take decisions that improve governance. However, she did not clarify whether the rule would apply to projects funded through MLA and state govt allocations.
Chaudhari has already directed all civic departments and zone officers to strictly implement the new e-tendering rule. NMC has also warned contractors and officials against splitting larger projects into smaller segments to bypass the Rs3 lakh threshold.
The controversy highlights a deeper power struggle between the municipal administration and elected representatives, each claiming to act in the public interest. While NMC insists that the move will enhance financial discipline and curb manipulation, opposition from political leaders suggests that the fight over control of civic contracts is far from over.