GCC Cancels Rs 284 Crore Footpath Tenders Over Inflated Costs and Bid Rigging

The Greater Chennai Corporation (GCC) on Wednesday cancelled footpath construction tenders worth ₹284 crore across Chennai—including key stretches in Mylapore, Adyar, Besant Nagar, and Kilpauk—following allegations of bid-rigging and a four-fold inflation of project costs.

The funding for the footpath project was initially announced in the GCC budget by Mayor R Priya on February 19. The special projects department floated the tenders on February 20, shortly before the model code of conduct for the assembly polls came into force on March 15. Although lowest bidders had been identified for all 35 packages, the GCC had not yet issued official work orders.

The project had been split into 35 packages to lay footpaths across arterial stretches like Shastri Nagar in Adyar, Fourth Avenue in Besant Nagar, Barnaby Road in Kilpauk, Dr P S Siasamy Salai in Mylapore, and Raja Muthiah Salai near the Jawaharlal Nehru Stadium. Each package carried a tender value of ₹8 crore to ₹9 crore. GCC officials revealed that the budgeting was grossly inflated, noting that standard concrete and masonry footpath works typically cost only ₹1.5 crore to ₹2 crore for similar stretches.

Officials compared the proposed projects to the 500-metre-long Kader Nawaz Khan Road pedestrian plaza, which cost ₹19 crore but involved extensive utility shifting, lighting, seating, and premium flooring. In contrast, the cancelled packages proposed spending nearly ₹9 crore simply for concrete relaying over two or three roads. Under Package 6 in Anna Nagar West Extension, the GCC floated an ₹8.2 crore tender for approximately 1 kilometre of footpath on Park Road and North Avenue Road, which worked out to nearly four times the standard rate.

Irregularities also emerged in contractor participation. In Package 9 in Mogappair, only two firms participated, with the winning firm quoting nine percent above the estimate. A similar pattern occurred in Package 2, where the same firms participated and quoted up to 15 percent above estimates. Typically, competitive tenders attract at least 20 contractors who bid below the estimated project cost.

Rama Rao, president of the Greater Chennai Contractors Association, noted that restrictive tender conditions like site and machinery visit certificates limited participation. He called for action against the involved officials. The Municipal Administration and Water Supply department has directed the GCC to scrutinise about 40 ongoing tenders. Officials stated the detailed project report will be reviewed and the footpath project will be retendered with revised estimates.