Joint ventures to woo contractors
With few contractors coming forward to take up the rural water supply and sanitation works on tender basis, the state government has mooted selective joint ventures. The government plans to take up about works worth about Rs 2,000 crore per annum for next one decade and going by the present pace of works and the lukewarm response from contractors, the goal cannot be achieved.
On a trial basis, the panchayat raj and rural development department (RWS-1) has mooted joint ventures and the same has been approved by the government in modification of present tender system. The special officer and engineer-in-chief, RWS & S department, Hyderabad has stated that for there were a limited number of agencies for the works since several years and the number of contractors diminishing day by day. On the other hand, the quantum of work was growing multi-fold even as the financial capabilities of the existing agencies remain limited.
Besides, some projects have been delayed due to clearance from railways, R and D, forest, irrigation and other departments. He said that there was a need for favourable tenders in order to save on the budget and time in extending the much-needed service delivery in rural areas.
The official also informed the government that due to present tender conditions, new agencies were unable to participate in RWS&S works. “The work load is also going to be increased substantially during 2012-13 and there is need of grounding projects worth about Rs 2,000 crore per annum for the next ten years, saturating coverage in rural areas. The joint ventures would help the department to attract more number of agencies, leading to healthy competition,” said panchayat raj and rural development department secretary Vikas Raj.
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