L&T Wins Bengaluru Suburban Rail Project’s Viaduct Work

Larsen & Toubro today emerged as the lowest bidder to construct the first 8.027 km elevated viaduct of the 149.348 km Bengaluru Suburban Rail project (BSRP).

The scope of this section of the 23.866 km Corridor 2 (Baiyyappanahalli – Chikkabanavara) will connect Benniganahalli and Chikkabanavara. This is the first civil package of the entire project and the construction of stations en-route will be part of a separate package.

Karnataka’s Rail Infrastructure Development Company (K-RIDE) invited tenders for its construction in November 2021 with an unknown estimate and 27 month deadline. Technical bids were opened earlier this month to reveal 3 bidders.

Financial Bid Values

FirmBid (Rs. Crore)
Larsen & Toubro849.97
Afcons Infrastructure1219.71
NCC1582.56

Tender No.: K-RIDE/BSRP/10/2021

Scope: Design and construction of elevated viaduct of length 8.027 km (ch: -0.675 km to -0.050 km & ch: 11.137 km to 18.350 km) including ramps and formation in embankments /cuttings including blanketing, major bridges, minor bridges, RUB, ROB, ROR, retaining wall, sacrificial retaining wall and drains, utility diversions of at-grade section of length 17.551 km (ch: -0.964 km to ch:-0.675 km, ch: -0.050 km to ch: 11.137 km & ch: 18.350 km to 24.425 km) and other related infrastructural works from Benniganahalli to Chikkabanavara, excluding station buildings, of corridor – 2 of Bengaluru Suburban Railway Project (BSRP)

Corridor-2 is displayed in Blue (Source: KRIDE’s website) – view Bengaluru Suburban Rail Project project information

All 3 bids are all over the place. I’m not aware of KRIDE’s estimate, so it’s difficult to assess how L&T’s bid is placed and the chances of a contract getting awarded. We’ll have to wait and see how this plays out.

As shared earlier, Egis – Louis Berger – AECOM JV emerged as the preferred bidder for the project’s General Consultant (GC) contract in February. I haven’t seen any other significant tender notice (civil or systems) getting published in 2022.

For more updates, check out the Bengaluru Suburban section, Bangalore Metro section or my Home Page! Sign up for free instant email notifications on new posts over here. Like this post? See how you can get early-access to updates and support the site over here.

– TMRG

written by

Global traveler who prefers mass rapid transit

17 Responses to "L&T Wins Bengaluru Suburban Rail Project’s Viaduct Work"

  1. Parth says:

    Huge difference between L1 and L3. Almost double 🙄

    Reply
    • Dr MB Esquire says:

      Moreover, and the more important factor, L&T is an Indian firm, well-versed and capable of delivering the goods! This Nation must prefer capable Indian firms in our Nation building projects–no ‘ifs’ or ‘buts”!

      Reply
  2. Ritvick Ghosh says:

    Hi TMRG, thanks for the update! According to MD, they expect to award the contract in the next few days if the documents are fine. I do believe that the quoted amount is within their estimate https://www.google.com/amp/s/www.thehindu.com/news/cities/bangalore/suburban-rail-project-lt-emerges-as-lowest-bidder/article65246499.ece/amp/

    Reply
  3. SJ says:

    Huge difference between L1 and L2, what could be the reason? Either they have different understanding of project scope, or severe cost cutting done by L and T , 50 percent difference is not normal, something is wrong in the dpr or given the commodity price increase, Afcons and NCC may have factored in that increase while L and T is banking on cost escalation clauses to increase compensation in future which is manipulative. All these companies are reputed with huge orders in Bangalore already so initial setup is not an issue. Or third option maybe that they have colluded between each other to divide packages. It will be evident when other packages are opened

    Reply
    • Arco says:

      Not against L&T …but your quary is very general.. foreign delegation need double amount of revenue for 8hr booking then Indian delegation..so..now u can easily trace the point of view ..where man Power resource is primary in any project work…

      Reply
    • Kumar says:

      Realistic analysis. Reliance on cost escalation/cartel formation must be.

      Reply
  4. Yogeesha M R says:

    Here is why huge cost difference between bidders —- L1 – L3

    Except L & T, rest all bidders have added KICKBACK to notoriously notorious goon trio — Politicians, Bureaucrats & middlemen….

    Whereas L & T NEVER bothers about tenders & indulge in corrupt practices…..

    Their order book is overflowing due to international projects….
    Least bothered about domestic projects….

    Reply
  5. Aravind says:

    Nothing wrong in L&T quoting less & getting order. Important is that they execute work without any cost escalation or time over runs or compromise on quality. We know what happened to EJIPURA flyover executed by SIMPLEX.

    Reply
  6. Mahesh T J says:

    L1 and L3 cant have this difference. either one is underquoting and seek more funds or stall project stating unviable. L1 may be genuine, considering the time, inflation, material cost and all the more, India’s most thirsty mouth of Politiicans and Bureaucrats

    Reply
  7. Purushothaman P says:

    Interesting & the difference is not common.. I had been briefly with l&t and also with government departments…both in government ordinary projects and l&t epc projects.. design & estimations are done fairly well & good… further, what in government we do in ten years, l&t does it say in two years..these are major factors, say theoretically..cost escalation and associated risks in delaying start & completion really kill many projects.. I wish all success..

    Reply
    • Purushothaman P says:

      Correction..the difference is not un-common..
      Rather manytimes l&t used to be too away from the least, but when conditions are optimum & favourable say with respect to project size, demand, technology etc..l&t is a natural winner..

      I was with NPCC New Delhi long ago, then we were also like l&t but from government side..things had changed in NPCC, or I had my dreams of housing projects..so I left..I couldn’t take up my dream project.. now, my project is on an Utopian concept Full Employment..here also I have not made any progress..

      Reply
  8. The Indian Railway Guy says:

    I know everyone’s saying this, but that’s a pretty big gap between L&T and Afcons. Has L&T overestimated its capability (unlikely given its track record), or have Afcons/NCC colluded with it? I mean, the two already bagged Namma Metro’s blue line contract, so has L&T taken this one? Conspiracy time.

    Reply
  9. R Venkatraman says:

    L&T contract claims department with legal brains are very strong in interpretations of wordings in contract. L&T(Former ECC) is known as extra claim company. Hence they quote very precisely and any delays by other parties or client are contractually tackled for avoiding LD penalty in due time and consequent additional cost of execution to them are promptly claimed. AS Far as pay off methods vary company to company. Even if pin supply is beyond contract it would be claimed extra. Hence they do not pad much in the quote.This is my personal opinion.

    Reply
  10. Vijay N says:

    L&T needs to get the job with strict time frame . Play by the rule book .Even if cost over run will still end up less than L2
    Regards
    Vijay
    Ex Tata

    Reply
  11. Vijay N says:

    L&T needs to get the job with strict time frame . Play by the rule book .Even if cost over run will still end up less than L2 .
    Regards
    Vijay

    Reply

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