In a corner over 2BHKs, Telangana govt to change tender conditions

Hyderabad: The Telangana state government has decided to change the tender conditions to reduce the financial burden on contractors so that they take up construction of the 2BHK houses in the state.  The housing department has sent the file to Chief Minister K. Chandrasekhar Rao for approval and orders will be issued once thereafter. The TRS government had announced it would build 2.72 lakh 2BHK houses as part of its poll promises.

However, the government's efforts to implement the promise have run against a wall. So far, the state government has issued tender notification thrice, but contractor have shied away, saying that the profit margin is too less. This is despite the state government’s assurance to contractors that it will supply sand free of cost and cement at the rate of Rs 250 per bag. Chief Minister K. Chandrasekhar Rao had announced in the recent Assembly session that the government will look into the issue and take some decisions in favour of contractors.

Accordingly, the housing department has proposed some changes in the tender conditions. Earnest Money Deposit has been reduced to 0.50 per cent from 1 per cent while submitting the tenders, The EMD while signing the contract has been reduced to 0.50 per cent from 1.50 per cent, Withholding of Further Security Deposit reduced to 2 per cent from 7.5 per cent, Return of 5 per cent FSD at the time of billing and at the time of completion return of EMD and FSD of 2.5 per cent each has reduced to 1 per cent each. Officials said this will drastically reduce the financial burden on contractors and expressed the hope that they will come forward to take up construction of the 2BHK houses.