Pune civic body's residential project faces setback

In a major setback to the proposed rehabilitation of 7,500 families under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the Pune Municipal Corporation has scrapped the tendering process of Rs 328 crore.

Expressing doubts over the credibility of firms that had filed the tenders, PMC last week blacklisted three firms on the grounds that they had manipulated the tendering process.

The Maharashtra government had set up a Slum Rehabilitation Authority (SRA) to provide housing to slum dwellers. However, no SRA project has been approved so far.

The SRA is yet to decide if the slum dwellers should be given flats with area of 350 sq ft or 500 sq ft. A large number of slum dwellers have also opposed the SRA implementation on the grounds that it is not in the interests of the slum dwellers.

While the controversy continues, the PMC is trying to provide low-cost housing through the JNNURM funds. But the manipulations in the tendering process have been a major setback for the PMC.

The PMC has now clarified that it will recall tenders for the largest-ever development project in PMC history. The municipal corporation plans to build three huge residential projects, in Hadapsar, Bibvewadi and Kothrud regions for 7,500 families.

The Centre will fund 50 per cent of the cost while the state government plans to invest 20 per cent of the total expenditure for the project.

On Friday, PMC officials opened the tenders in the presence of contractors and immediately, the process was scrapped.

The contractors were told that the process was scrapped following a few technical flaws. On Saturday, officials clarified that three firms involved had manipulated the process, which led to its cancellation.

"We are sure that the three firms have joined hands to file tenders to bid for the minimum amount. The three firms have been 'blacklisted' and will not be allowed to participate in any of the PMC projects," a PMC officer from the engineering department told Business Standard.

The PMC plans to provide lost-cost housing to people living in slums and the homeless people in the city.