Five firms win construction contracts for Pune Ring Road Project

Pune, India (Urban Transport News): On May 21, 2024, five civil engineering firms were announced as the lowest bidders for nine construction contracts for the 136.80 km Pune Ring Road project following the opening of financial bids. This crucial infrastructure development project is set to enhance connectivity and reduce traffic congestion around Pune, a rapidly growing metropolitan area in Maharashtra, India.

The firms that emerged victorious in the bidding process are Megha Engineering and Infrastructures Ltd. (MEIL), Navayuga Engineering Company Ltd. (NECL), GR Infraprojects (GRIL), PNC Infratech, and Roadway Solutions India Infra (RSIIL). These companies are set to undertake the task of constructing the ring road, which will be developed as a 4-6 lane access-controlled highway by the Maharashtra State Road Development Corporation (MSRDC).

The Pune Ring Road project is divided into nine packages, covering different segments of the route through the taluks of Khed, Haveli, Purandhar, Bhor, Mulshi, and Maval. Each package has specific lengths and estimated costs, and the bids for these packages have been keenly contested by various construction firms. The project aims to facilitate smoother traffic flow and reduce the travel time around Pune, thereby boosting the region's economic activities and overall development.

MSRDC initiated the process by inviting Request for Qualification (RfQ) applications in April 2023. By June 2023, 28 firms had submitted their applications, out of which 18 qualified for the Request for Proposal (RfP) round in December 2023. Subsequently, price bids were invited in January 2024, and by April 2024, MSRDC had received 26 bids from 12 firms.

Here is a detailed breakdown of the financial bid values for each package:

Package E1:

• Length: 11.85 km
• Chainage: 0.650 to 12.500
• Estimated Cost: ₹1,805 crore 

Bidders

• Megha Engineering and Infrastructure Ltd.: ₹2,524.92 crore (L1)
• Navayuga Engineering Company Ltd.: ₹2,633.00 crore (L2)

Package E2:

• Length: 13.80 km 
• Chainage: 12.500 to 26.300 
• Estimated Cost: ₹1,706 crore

Bidders

• PNC Infratech Ltd.: ₹2,486.00 crore (L1)
• Welpsun Enterprises: ₹2,548.90 crore (L2)
• HG Infra Engineering Limited (HGIEL): ₹2,586.11 crore (L3)
• Larsen & Toubro Ltd. (L&T): ₹2,612.80 crore (L3)
• J Kumar Infraproject Ltd.: ₹2,626.00 crore (L4)

Package E3A & E3B:

• Length: 21.20 km
• Chainage: 26.300 to 47.500 
• Estimated Cost: ₹1,991 crore

Bidders

• Megha Engineering and Infrastructure Ltd: ₹2,756.86 crore (L1)
• Navayuga Engineering Company Ltd.: ₹2,855.00 crore (L2)

Package E4:

• Length: 24.50 km 
• Chainage: 47.500 to 72.000
• Estimated Cost: ₹1,732 crore

Bidders

• Roadway Solutions: ₹2,251 crore (L1)
• GR Infraprojects: ₹2,316.07 (L2)
• APCO Infratech: ₹2,342 crore (L3)
• PNC Infratech Ltd. ₹2,396 (L4)

Package W1:

• Length: 14.65 km
• Chainage: -0.650 to 14.000 
• Estimated Cost: ₹1,904 crore

Bidders

• Megha Engineering and Infrastructure Ltd.: ₹2,661.79 (L1)
• Navayuga Engineering Company Ltd.: ₹2,775.00 (L2)

Package W2

• Length: 20.00 km
• Chainage: 14.000 to 34.000 
• Estimated Cost: ₹1,975 crore

Bidders

• Navayuga Engineering Company Ltd.: ₹2,702 crore (L1)
• Afcons Infrastructure Ltd: ₹2,824 crore (L2)
• Megha Engineering and Infrastructure Ltd.: ₹2,884 crore (L3)

Package W3:

• Length: 14.00 km
• Chainage: 34.000 to 48.000 
• Estimated Cost: ₹1,980 crore

Bidders

• Navayuga Engineering Company Ltd.: ₹2,696 crore (L1)
• Megha Engineering and Infrastructure Ltd.: ₹2,812 crore (L2)
• Afcons Infrastructure Ltd.: ₹2,874 (L3)

Package W4:

• Length: 7.50 km
• Chainage: 48.000 to 55.500 
• Estimated Cost: ₹ 1,992 crore

Bidders

• Navayuga Engineering Company Ltd.: ₹2,724 crore (L1)
• Afcons Infrastructure Ltd.: ₹2,823 crore (L2)

Package W5:

• Length: 9.30 km
• Chainage: 55.500 to 64.800 
• Estimated Cost: ₹1,533 crore

Bidders

• GR Infraprojects Ltd.: ₹1,997.07 crore (L1)
• Gawar Construction: ₹2,089.00 crore (L2)
• HG Infra Engineering Limited (HGIEL): ₹2,122.11 crore (L3)

The financial bids for each package have significantly exceeded the MSRDC's estimated costs, leading to a potential deadlock that could delay the project. For instance, Megha Engineering's bid for Package E1 is 39.88% higher than the MSRDC's estimate, while PNC Infratech's bid for Package E2 is 45.72% higher.

This discrepancy leaves MSRDC with a tough decision: either revise the budget to align with the higher bids or scrap the bidding process altogether and invite new bids. Any delay in making this decision could push back the project timeline, impacting the overall completion schedule.

The option to negotiate with the bidding firms seems limited without compromising on the scope or quality of the project. Given the importance of the Pune Ring Road in improving regional connectivity and traffic management, stakeholders are keenly awaiting MSRDC's next move.

The Pune Ring Road is part of a broader infrastructure development initiative by the MSRDC. On the same day as the ring road bids were opened, financial bids for other significant projects such as the 179.85 km Jalna-Nanded Expressway and the 126 km Virar-Alibaug Multi-Modal Corridor were also unveiled. These projects, like the Pune Ring Road, are integral to improving transportation infrastructure across Maharashtra, aiming to bolster economic growth and enhance the quality of life for residents.

The announcement of the lowest bidders for the Pune Ring Road project marks a significant milestone in Maharashtra's infrastructure development journey. However, the challenges posed by the higher-than-expected bids need to be addressed promptly to ensure the project stays on track. With major construction firms like MEIL, NECL, GRIL, PNC Infratech, and RSIIL on board, the potential for successful completion is high, provided that financial and logistical hurdles are navigated efficiently.

As we await further developments, the successful execution of the Pune Ring Road project promises to be a transformative step in enhancing the region's connectivity and supporting its economic aspirations.