Mumbai : Tenders invited to make tar roads in Mumbai city were opened on Monday, but unfortunately there was no response from contractors. Reason: the BMC has drastically increased the guarantee percentage in the tender.

A similar situation was witnessed last time when tenders to make cement roads in Eastern suburbs were opened. Tenders for Eastern suburbs are expected to be reopened on November 29.
Normally, BMC has to shell out money from its coffers to fill the potholes. To offset its losses, it has now decided to increase the guarantee percentage in the tender value. This is seen as a possible reason why there was no response from the contractors. A senior officer confirmed this possibility.
Last time, the guarantee amount came to 3 per cent of the total value of the tender. The BMC has suddenly increased this to 10-20 percent. According to senior officials, it was estimated that an amount of Rs 97 crore would be required to make new tar roads in the city. This amount gets divided according to the wards in the city. So the contractor carrying out the work worth 15-20 percent of the total amount will have to pay 10 percent as a guarantee. While the one carrying out work amounting to more than 20 percent of the total amount will have to pay 20 percent as a guarantee.

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