"₹9,000 per Sq. Ft Without Land? Amaravati Tower Tenders Raise Eyebrows"
Whose greed has stalled the tenders for the iconic towers? Is it the companies’... or the top brass in the government? This is currently the hot topic among Andhra Pradesh’s administrative circles. No matter how high the Capital Towers rise, criticism is being heard from within the administration that the corruption associated with them is reaching new heights as well. IAS officers and engineers were shocked to see that a cost of ₹9,000 per square foot was fixed solely for construction, even without allocating the land. This strange development pertains to the construction of the Secretariat in Andhra Pradesh’s capital. While the capital farmers and the people of Andhra Pradesh hope the Amaravati project is completed without further controversy, Chief Minister Chandrababu Naidu, Minister Narayana, and CRDA officials are continually dragging the tender process into disputes.
Simultaneously, they are also being criticized for creating opportunities for large-scale corruption. As per the initial schedule, these prestigious iconic tower tenders were to be finalized by May 2. However, for some reason, they were postponed to May 7. Now, even though it’s May 23, a final decision regarding these crucial Secretariat-related tenders in Amaravati has not yet been taken. What’s causing this delay? Explosive details are coming to light. According to officials, the construction of these iconic towers was awarded to reputed companies including L&T, Shapoorji Pallonji, and NCC. But the issue arose when the construction cost was fixed at an unusually high ₹9,000 per square foot during the estimation stage, sparking controversy. Despite this high rate, the companies submitted tenders with further excess costs, making it difficult for the government to approve them, according to official sources.
According to current regulations, no work undertaken by the state should allow more than a 5% excess over estimated costs. But in Amaravati, the rules were flouted — the government violated its own G.O. by allowing companies like BSR Infra and others more than 8% excess. Now, in the case of these iconic towers as well, some companies have quoted above the ceiling limit. This has left officials confused about how to approve such tenders, say government sources. In fact, a CRDA meeting was recently held where the tenders were supposed to be finalized. But now, due to the issue of excess costing, it seems to have become a major headache for the government, said an official. If the quoted rates themselves are inflated and then additional excess is allowed, people are bound to doubt whether the government is truly working to complete the capital’s construction or pursuing some other agenda.
As of now, officials state there is no clarity on when the iconic tower tenders will be officially finalized. Last month, AP CRDA invited tenders for the construction of these five towers. The main tower, called the GAD Tower, is to house the Chief Minister’s office along with other offices. The cost of constructing just this one tower is ₹1,126 crore. The estimated cost for Towers 1 and 2, which are part of the Secretariat, is ₹1,897.86 crore, while Towers 3 and 4 are expected to cost ₹1,664 crore. Together, under the name Amaravati Government Complex, the total cost for constructing all five towers is ₹4,668.82 crore. Since the companies have quoted prices above the estimates, it remains to be seen how high this final cost will go.
