PIDB slashes minimum upfront consideration to woo bidders

The state government is finding it hard to get bidders to start development projects in Mohali.

A state-of-the-art air-conditioned multistoried bus terminal-cum-commercial complex is one of the total 13 development projects awaiting a bidder, three months after its previous bidder backed out.

The Punjab Infrastructure Development Board (PIDB), which was assigned the task of refurbishing Mohali, has failed to start Rs 4,843-crore projects.

The work on bus terminal-cum-commercial complex project, which was planned to meet the standards of an airport with most advanced facilities, was abandoned after Mumbai-based Akruti City Limited failed to submit a performance security of Rs 10 crore. Besides, the firm could not pay 50 per cent of the upfront consideration of the total bid of Rs 201 crore within a stipulated time.

In early August, the firm was allotted the work on the project following the acceptance of its highest bid for the construction, operation and maintenance of first-of-its-type tower-type building on 7.02 acres on the National Highway-21 in Sector 57.

As the bidder failed to pay the project development fee of Rs 1.25 crore and failed to sign the concession agreement, the PIDB Executive Committee recently decided to invite fresh bids for the project.

In the view its past experience, the PIDB has drastically slashed the minimum upfront consideration amount to Rs 52 crore. This means that during the re-bidding on or before January 7, the eligible entities have to make bids over and above Rs 52 crore. This means the present offer is one fourth of the last bid.

... contd.