IL&FS Transportation Networks Ltd (ITNL), road construction arm of IL&FS, has reportedly emerged as the lowest bidder for EPC contract for Zojila tunnel project in Jammu and Kashmir in the tender floated by the National Highways and Infrastructure Development Corporation (NHIDC).

The opening of financial bids was conducted on Friday in New Delhi, according to NHIDC announcement dated July 21, for which four eligible bidders, including ITNL, Larsen & Toubro, Jaiprakash Associates and Reliance Infrastructure were invited. NHIDC has called for bids for Zojila project that Transport Minister Nitin Gadkari had earlier estimated at ₹10,000 crore in May this year.

According to sources, ITNL has bid the lowest, while the reserve price of the contract has also been reduced by almost half, to around ₹5,600 crore. Industry sources say the price bid by ITNL was significantly lower than even the reserve price, while at least one other bidder has bid above ₹7,000 crore.

K Ramchand, Managing Director, ITNL, did not respond to calls and messages on Friday evening.

High-altitude bidding Zojila tunnel is considered one of the most complicated project in the State as it aims to establishing year-round connectivity between Srinagar and the Leh-Ladakh region. Currently, Leh-Ladakh is cut off from the rest of India for almost six months due to snowfall.

According to one of the bidders, who spoke on conditions of anonymity, industry was caught by surprise after learning the results of the tender. “This is a very complicated project, difficult terrain, so one can only wonder how could ITNL bid below the reserve price,” he said.

Current tender is the government’s fifth attempt to award the contract for this project.

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