( 1 ) INTRODUCTION: the Government of Andhra Pradesh mooted water resource development projects for medium size projects in the State with a view to complete all the important projects in progress and also proposed to take up new projects. All these are to be completed within a period of five years to augment irrigation potential. The Government proposed to divide works into suitably large convenient packages so as to invite tenders for Engineering, procurement and Construction (EPC)on turn key system including investigation, design, preparation of construction of projects, cost estimates, construction, maintenance and operation for one irrigation system. The government decided to take up the tender process in two stages. In the first stage it proposed to empanel a specified number of special class civil contractors by inviting offers for pre-qualification to tender for the projects. In the second stage it was proposed to again invite tenders inviting offers from empanelled concerns/firms/companies to take up water resources projects on EPC turn key basis. These financial bids are to be evaluated mainly at the stage of a high powered committee and then by the Government. The disput

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