Hyderabad Metropolitan Development Authority (HMDA) is likely torenegotiate with the two interested parties who had submitted bids formanual collection of toll taxon the completed portion of the Outer Ring Road (ORR).
This is because the contractors have quoted only half the estimated amount. This may delay the tender process for awarding of the contract. It is learnt that the municipal administration and urban development (MA&UD) department has asked HMDA to renegotiate with the two interested parties.
The bid to farm out toll tax collection duties has been on for the past one year but not many parties have evinced an interest in taking up the contract.
When HMDA invited tenders last June, only one contractor, Eskon India, submitted bids that too with an offer of only Rs 66 lakh. That tender was cancelled and fresh bids were invited in February 2012. However, this time only two parties came forward to compete for the contract.
In the fresh bids, one contractor quoted Rs 20 crore while the other's pitch was for Rs 18.9 crore for 18 months, which is only 50 percent of the revenue HMDA expects to earn through the toll booths. This even after the contract period was increased from 12 months to 18. According to HMDA estimates, based on traffic studies, about Rs 42 crore should be generated through the ORR levy.