The tendering process for the iconic towers of the government complex in Amaravati, the capital city of Andhra Pradesh, has been delayed once again.
According to sources, the delay stems from a dispute over the percentage of alleged kickbacks expected by those in positions of power.
As per the original schedule, tenders for the prestigious five iconic towers — meant to house the state secretariat and General Administration Block — were to be finalized by May 2.
The deadline was later extended to May 7 for undisclosed reasons. However, as of May 23, no final decision has been made regarding these crucial secretariat buildings.
The construction cost for a single tower is estimated at ₹1,126 crore. Towers 1 and 2 are expected to cost ₹1,897.86 crore, while Towers 3 and 4 are projected at ₹1,664 crore.
In total, the five towers — part of the Amaravati Government Complex — are estimated to cost ₹4,668.82 crore.
Sources reveal that major construction firms such as L&T, Shapoorji Pallonji, and NCC are competing for the contract.
What raised eyebrows was the projected cost of construction — reportedly around ₹9,000 per square foot. Even senior IAS officers and engineers were reportedly shocked at such high estimates.
Nevertheless, several companies submitted bids that exceeded this amount, putting the government in a difficult position over whether to approve them.
Under existing rules, no bid exceeding 5% above the estimated value is allowed. However, in the Amaravati case, this rule has allegedly been flouted.
The government reportedly violated its own Government Order (GO) by allowing up to 8% excess bids, notably in favor of companies like BSR Infra.
Now, similar violations are feared in the Iconic Towers tenders, as companies are again quoting prices above the permissible ceiling.
Sources allege that influential individuals are demanding a significant percentage of the project cost as kickbacks.
Officials from the Andhra Pradesh Capital Region Development Authority (APCRDA) are reportedly uncertain about how to proceed.
During a recent meeting to finalize the tenders, APCRDA authorities reportedly informed the government about the financial burden such inflated bids could impose.
As of now, there is no clarity on when the tenders for the Iconic Towers will be finalized.
With bids continuing to exceed the estimated values, the actual cost of the project could end up being significantly higher, sources said.
