State asks for scrapping of tenders issued between July 2 and August 22 that don't mention GST; only emergency works would be allowed
The newly implemented Goods and Services Tax (GST) has caused a huge setback to civic projects, as tenders for several of them do not mention GST. However, to ensure there was no loss to the state owing to exclusion of GST from the tenders, Brihanmumbai Municipal Corporation (BMC) received a circular last week from the state government, asking them to cancel the tenders finalised between July 2 and August 22, as they do not mention GST.
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The only sigh of relief is that emergency works such as pothole repairs have been allowed, but not without bringing down the costs through negotiations, as BMC will have to bear the GST.
The circular has further clarified that tenders need to be scrapped only if the work orders have not been issued to the contractor but the lowest bidder has been finalised. The state has further instructed inviting short notice tenders (tenders that would be opened within a week or two).
A senior civic official from the chief accountant (finance) department, said, "We will now have to issue short notice tenders, which will be finalised in the next 15 days so that there is not much delay."
However, officials said this re-issuing of tenders is likely to hamper projects planned immediately after monsoon, as the fresh cost evaluation will be involved in drafting new tenders. Rais Shaikh, Samajwadi Party corporator and group leader, said, "This delay wouldn't have occurred had the administration taken GST into effect earlier. Several health project tenders had been finalised, which will now be delayed."
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