A. GOPAL REDDY, J.

( 1 ) IN this writ petition, the petitioner challenges the action of the first respondent in entrusting the handling and transport work (Handt work) in respect of godowns situated at Anishetty Duppalapalli village, Nalgonda otherwise than by issuing tender notification as arbitrary, illegal and violative of rights guaranteed under Constitution and for a consequential direction to the respondents to issue tender notice for awarding contract of Handt work at the above godowns.

( 2 ) THE genesis of the lis: To overcome the problem of acute space shortage in the State for procurement, maintenance, storage and preservation of food grains, FCI offered minimum guarantee of 7 years occupancy for construction of 15 lakhs tons capacity of godowns to the first respondent, so that it can formulate a scheme for making available sufficient number of godowns at various places in Andhra Pradesh. In turn the State Warehousing Corporation evaluated a scheme in consultation with FCI and State Government to encourage private investors/partnership firms to construct and make available sufficient number of godowns to give as many services to private sector as possible. The broad aspect of the scheme is to see the investors have to construct godowns strictly following the FCI specifications at the identified places at their own costs and make them available to R1 within time frame because there is large scale demonstration by ryots for procurement of bumper crops by FCI at remunerative price. As an incentive to the private investors, the corporation guaranteed 7 years occupancy at a rent of Rs. 2. 00 per sq. feet per month. The Marketing Department in addition to FCI was giving an incentive for quick completion starting at Rs. 1. 00 per ton from 65 days and thereafter at Rs. 1/ per day to 115 days. The above incentives under the scheme are given by FCI Marketing Division and NABARD. To minimize the expenditure in construction and also for its maintenance, the private investors were made responsible to keep the godowns fit for storage during the period it is with the corporation and they are responsible for annual or casual repairs considered by the Corporation for the proper maintenance and storage of stocks. In order to create a better package, return and control over assets and also to attract more number of people for constructing the godowns, it was decided to award H and T work contract by nomination to the private investors who offered their godowns with sole intention to encourage public-private partnership in participation and storage of food grains. The scheme was notified by the first respondent on 17-3-2001 inviting offers from private parties for construction of godowns with a capacity of 15 lakh M. Tons under 7 years occupancy guarantee for storage of food grains in several places identified in this regard in the State of Andhra Pradesh including Nalgonda District. In response to the above notification, M/s. Sri Ramakrishna Storages and some others offered their bids which was accepted and was awarded the tender of constructing godowns in Nalgonda center by nomination by duly executing agreement on 24-5-2001. On the basis of the above agreement, M/s. Sri Ramakrishna Storages constructed six godowns with a capacity of 5000 M. Tons each by investing an expenditure of about 4 1/2 crores in the land belonging to them and delivered possession of 5 godowns on 6-8-2001 within sixty days and the remaining godown was given possession on 13-9-2001. As per the package of construction, preservation, maintenance, storage, Handt work was awarded to the investor at a discount of 5% on the existing rates. Questioning the award of H and T work at the above godowns in favour of M/s. Sri Ramakrishna Storages, the present writ petition has been filed without impleading the firm as a party respondent to the writ petition.

( 3 ) THE partner of M/s. Sri Ramakrishna Storages filed WPMP No. 3309 of 2002 to implead himself as party respondent

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