Karnataka High Court division Bench, led by Chief Justice N.V. Anjaria and Justice Krishna S. Dixit, issued an interim order on March 11, calling for a pause on all actions related to the short-term tender.
The Karnataka High Court has recently put a temporary halt to the tender process for the ambitious Rs.8,005 crore Sharavathi Pumped Storage and Hydro Electric project, spanning across Shivamogga and Uttara Kannada districts. This decision comes in response to an appeal by engineering giant Larsen and Toubro Ltd., Mumbai, which has raised concerns over the tendering procedure.
The Division Bench, led by Chief Justice N.V. Anjaria and Justice Krishna S. Dixit, issued an interim order on March 11, calling for a pause on all actions related to the short-term tender. This directive was a result of Larsen and Toubro’s challenge against a previous ruling by a single judge on March 6, which had dismissed the company’s objections to the tendering process.
Larsen and Toubro had contested the tendering timeframe, arguing that the stipulated 21 days for submitting bids was insufficient and did not comply with the Karnataka Transparency in Public Procurements Rules, 2000, which typically require a minimum period of 30 days for tenders exceeding Rs.2 crore. The company emphasized that tenders of such magnitude and complexity would necessitate a minimum preparation period of 90 days, suggesting that the shortened timeline was designed to “favour particular tenderers.”
The tendering process for the Sharavathi pumped storage project, which began on February 2, 2024, concluded within a short span of 21 days. The allocated timeline for contractor inquiries and clarifications was remarkably brief, lasting only four days. This left contractors dealing with the project’s complexity and in need of crucial clarifications with limited time to prepare their bids.
The single judge had previously noted that the Karnataka Power Corporation Ltd. (KPCL) Board had the authority to shorten this period, provided reasons were documented in writing. The KPCL had justified the reduced timeline by citing the urgent need to address the state’s power supply shortage, a rationale that had initially been accepted.
Also Read- UPSC Aspirants In Manipur: Delhi High Court Seeks Exam Center Clarification (lawchakra.in)
The activist group Jana Sangrama Parishat has voiced objections to the project, citing worries about its potential negative impacts on the forests within the Sharavathi Valley. Akhilesh Chipli, the Parishat’s district president and an environmentalist, highlighted that the project intends to transfer water from the Gerusoppa reservoir to the Talakalale reservoir against gravity, with the goal of producing 2000 MW of power.
However, the situation took a turn when the High Court observed that KPCL had proceeded to issue a Letter of Award for the project to one of the bidders on March 11, even before the single judge’s detailed order was available. This premature action prompted the Bench to order that
“all the actions pursuant to the Letter of Award dated March 11, 2024, shall remain in abeyance and the parties shall maintain status quo till the next date of hearing.”
The case has sparked a debate over the balance between expediting crucial infrastructure projects and adhering to transparent and fair procurement practices. KPCL’s defense argued that Larsen and Toubro lacked the necessary qualifications to participate in the tender, specifically lacking experience in electromechanical and hydromechanical works, and accused the company of attempting to “stall the project.”
“We’ve been protesting against the project for ten years, but the government intends to swiftly award the tender to circumvent opposition,”
Chipli stated. He accused the hurried tender, valued at crores of rupees, of casting doubt on the project’s transparency and urged the state government to cease the project immediately.
“The rush to solicit tenders raises suspicions regarding the motives behind the project. Initially estimated at over Rs 4,000 crore, the project’s costs have now doubled. Such extravagant spending only serves to enrich the corrupt,”
Chipli further alleged.
As the legal proceedings unfold, the future of the Sharavathi Pumped Storage and Hydro Electric project hangs in the balance. The Karnataka High Court’s decision underscores the importance of due process and transparency in public procurement, especially in projects of significant environmental and economic impact. The case is set to continue, with the construction industry and environmental stakeholders closely watching the outcome.
Also Read- Byju’s ‘EGM Resolution’ Case||Karnataka High Court Extends Interim Protection (lawchakra.in)
