The Hindu Business Line : `Nothing wrong in altering Pulichintala design'

Contractor speak
The bidder is free to choose the type of non-overflow dam spillway based on own design during actual execution, which should, however, satisfy the specifications and the standards.

MR D.V. NAIDU

Hyderabad , March 5

Pulichintala project is one of the main irrigation projects being taken up for construction by the State Government as part of its `Jalayagnam' programme.

The Government intends to build 30 major and 18 medium irrigation projects with a total outlay of Rs 46,000 crore under this programme. Ever since these contracts were finalised, there have been allegations of corruption.

Pulichintala project, to be built across Krishna at Bellamkonda in Guntur district, has been in the spotlight in recent times with the Government facing criticism over approving a change in project design by allowing the contractor to replace a portion of concrete dam with earth dam on the left flank.

With the approval given without any change in the overall cost of the project, the Government has been facing a barrage of criticism from the Opposition parties and the media as the contractor gets benefited to the tune of Rs 55 crore.

The Opposition demand is to lower the project cost so as to save public funds.

In this backdrop, Business Line spoke to Mr D.V. Naidu, Managing Director of Srinivasa Constructions Ltd (SCL), and the contractor of the Pulichintala irrigation project.

SCL emerged successful with an outlay of Rs 286.89 crore for executing the work under the under EPC (Engineering, Procurement and Construction) contract after competing with nine consortiums. The company has bagged two more irrigation projects of Veligonda and Vamsadhara in the State costing about Rs 272 crore.

Excerpts of the interview:

Why was the project design changed?

There is nothing wrong in the EPC contractor proposing an alternative design that is acceptable. Only after award of the work, the surveys were carried out and decision taken to adopt the earth dam for some length of the left flank.

The earth dam on the left flank was adopted since the concrete dam would be buried more than exposed because of the deeper foundation grades. The technical committee, which examined the alternative design, has agreed with the proposals.

Are the provisions permitting you to change the design?

Yes. As per the general conditions of the contract, the type of the dam can be masonry or concrete or composite or any other. The bidder is free to choose own alternative design without changing other basic project parameters. The type of dam (whether concrete or earth dam) is not the basic parameter.

It was also specified in the conditions that alignment of dam, location of sluices, size of vents, radius of gates, length of spillway, power blocks mentioned in the contract were only indicative. We have come out with detailed designs based on the guidelines. The bidder is free to choose the type of non-overflow dam spillway based on own design during actual execution, which should, satisfy specifications and the standards.

Can you change the project design whenever you want?

No. Without the approval of employer (Government), the EPC contractor cannot change the design. As per the conditions of the contract, the contractor can, during the detailed engineering, modify or change the preliminary design of the civil and hydro mechanical works of the project for reasons of safety, cost and time effectiveness with the permission of the Government. However, the changes are permitted only when the changed design of the project is in conformity with the basic parameters and in accordance with the nationally or globally accepted practice and for the optimal performance of the works as warranted under the contract.

The change in design is said to be resulting in Rs 55-crore of savings to the EPC contractor. Do you plan to pass on the benefit to the Government?

No. While the internal benchmarks of the Government for the Pulichintala project stood at Rs 369-crore, we bagged the project quoting Rs 286.89 crore. By doing so, we already saved over Rs 80 crore of public money.

The nearest competitors submitted bids at Rs 422 crore and Rs 428 crore. However, we could bid at such low price only because of our innovative project design skills.

We had in mind the earth dam option at the time of bidding for the project. So, the question of passing on further benefits to the Government does not arise in the EPC contract at the time of executing the project.

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