1. These two writ petitions arise out of the same cause of action, hence they are disposed of together.

2. W.P.No.32328 of 2012 filed by Soma-CGGC JV, a joint venture, sought for the following relief.

“………………….. to issue a Writ, order or direction, one more particularly in the nature of a writ of Mandamus to declare the action of the 3rd respondent i.e., the High Power Committee, represented by the Chief Secretary, Government of A.P., in finding respondents 6 to 8 as qualified and responsive and consequential direction to open the financial bids of respondents 6 to 8 as arbitrary, illegal, unjust, violative of principles of natural justice, and vitiated by malice amounting to colourable exercise of power, contrary to the bid conditions and to set aside Memo No.17371/M & M1/CA-11/2012 dated 26.10.2012 issued by the 2nd respondent and consequential proceedings of the 5th respondent vide letter No.ENC/ISPP/DCE/OT.3/AEE-1/F.30/VOL.15, dated 31.10.2012.”

3. W.P.No.7520 of 2013 filed by M/s. Madhucon-Sino Hydro JV, rep. by its Authorised Signatory, sought for the following relief –

“……. To issue a Writ, Order or Direction, more particularly one in the nature of Writ of Mandamus

d) declaring the action of the official respondents in finding the 6th respondent’s bid as qualified, responsive as arbitrary, illegal and unjust and discriminatory, contrary to bid conditions:

e) to issue direction to the 1st respondent to cancel the contract agreement entered between the official respondents and 6th respondent since there is fraud played on the official respondents by the 6th respondent;

f) to issue direction to the 1st respondent to declare the petitioner consortium’ bid as lowest valued bid and further to direct the official respondents to issue the letter of acceptance in favour of the petitioner consortium being the lowest valued bidder.”

PROJECT

4. “Indira Sagar Polavaram Project” (ISPP), is a major multipurpose project, conceived by the Government of Andhra Pradesh, located on the River Godavari, near Ramayyapeta Village of Polavaram Mandal, West Godavari District. The project has been in contemplation since 1943 and is strategically important from the point of view of food and water security in the country. It is designed to create irrigation potential of 7.2 lakh acres in East Godavari, Visakhapatnam, West Godavari and Krishna Districts and to generate Hydro electric power with an installed capacity of 960 MWs. Irrigation and generation of electricity apart, the project is to supply water for drinking/industrial requirements of Visakhapatnam city and drinking water facility to several villages and towns enroute. Project works commenced in Andhra Pradesh in 2005 and about 43% works have been completed incurring an expenditure of about Rs.4545 crores. Central assistance of Rs.562.472 crores has been received for the project under the Accelerated Irrigation Benefit Programme. The tender in question is for the Head works of the project.

BACKGROUND –

5. Initially, tender bearing number “NIT No.04/2011-12”, dated 8.6.2011 was floated for a value of Rs.4,717 Crores. Seven joint venture entities participated in the bidding. The bid was cancelled with a view to recast the bid documents with better clarity, following the litigation and allegations that the lowest bidder lacked the requisite qualifications.

6. For the second time, tender was floated by the Engineer-in-Chief, the 5th respondent herein, bearing “NIT No.1/2012-13”, dated 16.4.2012. The work was named as “Investigation, Survey, Preparation of Designs and Drawings and L.P. Schedules etc., (Balance) and (1) Construction of Earth Dam Gaps I & III, Earth cum Rock Fill Dam for Gap-II, Spill channel, Approach channel and Pilot channel; (2) Construction of Spillway with crest level + 25.72 m and its ancillary works; and (3) Excavation of foundations of 960 MW Hydro Electric Power House, Approach channel, Intake structure, Tail race pool, Tail race channel etc., of Indira Sagar