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Local area specialisation in Jammu and Kashmir helped IL&FS bag the ₹4,899-crore Zojila pass tunnel project that will connect Srinagar, Kargil and Leh.
The company bid was as low as almost half of the highest bidder, enabling it to emerge as lowest bidder in the tendering process conducted by the Road Ministry, officials told BusinessLine .
Experience in on-going projects in J&K — where the terrain is difficult, climate harsh, and law and order situation volatile — helped IL&FS commit to complete the project at a relatively low budget.
The low cost could be partly explained by the fact that the company is also implementing the Z-morh tunnel project, and has completed the Chenani-Nashri tunnel project in the region. This means it has already mobilised man and machinery in the region, which has a difficult topography.
For the Chenani-Nashri project, it was supported by Jammu-headquartered Beigh Construction Company, a firm with expertise in tunnelling that has also implemented several road and rail projects like the Banihal rail link.
The steep altitude, extreme cold weather and law and order problems make it difficult for contractors to work in the region. Also, the area where the Zojila pass tunnel project has to be implemented sees a drop in temperature to sub- zero levels. It remains inaccessible for almost six months a year.
The project is mainly aimed at providing all-weather connectivity to the strategically important Leh, which is otherwise accessible only six months a year.
Along with the Z-Morh tunnel project, it is also designed to ensure safe, fast and cheap connectivity between Kashmir and Ladakh.
Cost issuesThe pre-bid conference saw interest from 11 road developers, though only four placed bids. The bidders apart from IL&FS were JP Group, L&T and Reliance Infrastructure. “The bids ranged from ₹4,899 crore to ₹8,900 crore,” an official said.
There were multiple rounds of bidding to finalise the project implementer. From build-operate-transfer, which involves private sector risk, the Ministry had to move to an engineering procurement contract, wherein the government handles the entire funding.
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