"A total of around Rs 780 crores is saved by going for reverse tendering for completion of Polavaram project headworks and construction of Hydro Electric Project. Megha Engineering and Infrastructure Ltd (MEIL) bagged the contract of completion" an official statement said.
The state government had earlier cancelled the contract given to Navayuga Engineering Company claiming that the previous TDP government had allocated the project on nomination basis, instead of calling tenders.
"The government had called tenders for both the projects at Rs 4,987.55 crore, however, the MEIL bid for Rs 4,359.19 crore. It is 12.6 per cent lesser than the Initial Benchmark value. Thus Rs 628.43 crores are saved through reverse tendering," an official statement said.
The government also claimed that the Hydro Electric Project works were awarded earlier at an excess price, which also saved Rs 152 crores.
Eight companies had taken part in the pre-bid meeting that was held on September 9.
After their queries were addressed by September 13, only one bidder - Megha Engineering and Infrastructure Ltd -participated in the bidding.