AMC to save Rs 15 crore from G20 funds!

Lokmat News Network

Aurangabad:

The Aurangabad Municipal Corporation (AMC) sources claimed that it would be saving around Rs 15 crore in the development and beautification works as they were allotted below the base prices by 25-30 per cent. These works have been launched in the wake of the G20 delegation visit.

The state government has released an aid of Rs 50 crore to AMC to undertake the above works, ahead of the visit. Hence there was heavy competition between the contractors to grab the contracts. Due to competition, the contractors agreed to do the contract work at below prices. Meanwhile, the sources added the AMC after the G20 visit would seek permission from the government to utilise the savings (Rs 15 crore) on other development works.

Presently, the development and beautification work launched by the AMC, the public works department (PWD) and the district administration are going on in the city. Of the granted aid of Rs 50 crore, the AMC administration launched 82 different types of works. The tenders were floated and the contractors were shortlisted through the procedures. The AMC received a good response from the contractors. For each work, there was a response from at least 5-7 contractors. Hence the AMC awarded the contract to the lowest bidder. Meanwhile, the challenge before the AMC is to ensure that these works are done as per the standard. To grab the work valuing Rs 10 lakh, the contractor due to the competition was ready to do it for Rs 7 lakh. In this way, the AMC is hopeful of saving Rs 15 crore after completing the 82 works (from Rs 50 crore), said the sources.

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The contractors responded to the tenders and even agreed to do the task in low prices as they were confident that the state government will be releasing the G20 fund soon. Meanwhile, they are in awe as the AMC has not received any single pie or token amount, out of the announced aid, for the development and beautification works.