 "BID, AUCTION")
To prevent companies from submitting unrealistic quotes to bag project contracts across industries, the government is planning to soon roll out a mechanism to curb irrational bidding.
It has been observed that such behaviour either distorts the bidding process and its price discovery function or lead to project delays when non-serious players bag contracts.
According to Tarun Kapoor, adviser to the PM, the problem is more acute in sectors like mining where cases of 1000 per cent bid premium being quoted by companies have been observed, or in areas like roads and highways where the L1 bid is irrationally low.
