The Ministry of Road Transport and Highways (MoRTH) has revised its stance on the acceptance of single bids for national highway projects. In a directive issued on Wednesday, the Ministry instructed the National Highways Authority of India (NHAI), National Highways & Infrastructure Development Corporation Limited (NHIDCL), Border Roads Organisation (BRO), and the Chief Secretaries of all states and union territories to consider single bids under specified conditions.
This marks a departure from previous norms that often saw tenders being scrapped due to lack of competition. Historically, competitive bidding has been preferred for its ability to invite multiple offers and foster better price discovery. However, the MoRTH’s new policy acknowledges the practical challenges faced in attracting sufficient bidder interest. The Ministry’s circular states that single bids should be considered valid if they meet certain criteria: adequate advertisement of the procurement, non-restrictive qualification criteria, and reasonable pricing in comparison to similar contracts. An Evaluation Committee will review the rates to ensure they align with market values and adjust for factors such as inflation and geographical conditions.
The decision also addresses concerns raised in a previous circular from the Department of Expenditure under the Ministry of Finance. This circular criticised the routine rejection of single bids and the consequent re-tendering process, highlighting its associated costs and potential delays. By allowing single bids under the new guidelines, MoRTH aims to mitigate the inefficiencies and expedite the execution of highway projects. This policy change reflects a pragmatic approach to managing procurement challenges and is expected to streamline project workflows while maintaining fiscal responsibility.
