Five civil engineering firms were announced as the lowest bidders

Five civil engineering firms were announced as the lowest bidders for the nine construction contracts of the 136.80 km Pune Ring Road project, following the opening of financial bids on Tuesday.

The winning firms include Megha Engineering and Infrastructures Ltd. (MEIL), Navayuga Engineering Company Ltd. (NECL), GR Infraprojects (GRIL), PNC Infratech, and Roadway Solutions India Infra (RSIIL).

The Pune Ring Road, a project of the Maharashtra State Road Development Corporation (MSRDC), will feature 4-6 lane access-controlled highways. The construction, divided into nine packages (E1, E2, E3A & E3B, E4, W1, W2, W3, W4 & W5), will span across the taluks of Khed, Haveli, Purandhar, Bhor, Mulshi, and Maval.

MSRDC initially invited Requests for Qualification (RfQ) for the project in April 2023, with bids opened in June 2023 revealing 28 applicants. Of these, 18 firms qualified for the next round in December 2023. In January 2024, MSRDC invited these firms to submit price bids, setting a construction deadline of 900 days. By April 2024, 12 firms had submitted a total of 26 bids.

Financial Bid Values: Here are the financial bid values for each package. MEIL and NECL each secured three packages, while PNC Infratech, GR Infraprojects, and Welspun each won one package.

Package E1:

Length: 11.85 km

Chainage: 0.650 to 12.500 – Village Urse to Village Indori in Mawal Tahsil

Estimated Cost: Rs. 1805 crore

Package E2:

Length: 13.80 km

Chainage: 12.500 to 26.300 – Indori to Chimbali in Mawal and Khed

Estimated Cost: Rs. 1706 crore

Package E3A & E3B:

Length: 21.20 km

Chainage: 26.300 to 47.500 – PRR E3A: Chimbali to Solu in Khed; PRR E3B: Solu to Lonikand in Khed and Haveli

Estimated Cost: Rs. 1991 crore

Package E4:

Length: 24.50 km

Chainage: 47.500 to 72.000 – Village Lonikand near Village Walti in Haveli

Estimated Cost: Rs. 1732 crore

Package W1:

Length: 14.65 km

Chainage: -0.650 to 14.000 – Urse to Village Kemsewadi in Maval Mulshi

Estimated Cost: Rs. 1904 crore

Package W2:

Length: 20.00 km

Chainage: 14.000 to 34.000 – Village Kemsewadi to Village Morewadi in Mulshi

Estimated Cost: Rs. 1975 crore

Package W3:

Length: 14.00 km

Chainage: 34.000 to 48.000 – Morewadi to Village Vardade Khamgaon Maval in Mulshi and Haveli

Estimated Cost: Rs. 1980 crore

Package W4:

Length: 7.50 km

Chainage: 48.000 to 55.500 – Vardade Khamgaon Maval to Village Kalyan Rahatwade in Haveli

Estimated Cost: Rs. 1992 crore

Package W5:

Length: 9.30 km

Chainage: 55.500 to 64.800 – Kalyan Rathwade to Shivare Kusgaon Phase in Haveli Bhor

Estimated Cost: Rs. 1533 crore

Alignment of Pune Ring Road and its Two Sections (WRR and ERR) – via MSRDC

The lowest bids for each package were significantly higher than MSRDC’s estimates, leading to a deadlock that may take months to resolve. For example, Megha Engineering's bid for Package E1 was 39.88% higher than the estimated cost, while PNC’s bid for Package E2 was 45.72% higher.

Negotiations are not possible without altering the scope or quality of the project. MSRDC must decide whether to revise their budget and award the contracts to commence work or scrap the process and re-invite bids.