Wave of Tender Cancellation Stalls J&K’s Infrastructure Growth.
Infrastructure
Slowdown
Wave
of Tender Cancellation Stalls J&K’s Infrastructure Growth.
“With this, even the
high-potential Sawalkote 1856 MW HEP tender that was floated few weeks ago has
joined the race of cancelled tenders, sending a troubling signal to investors
and citizens alike.”
Peerzada Mohsin Shafi
|
I |
nfrastructure development has long been viewed as
a cornerstone of economic growth and modernization for any society. With a
growing demand for better connectivity, energy security, and regional
development, the government has promised a range of ambitious projects for the
UT of Jammu and Kashmir which includes but are not limited to roads, tunnels and
hydropower projects. These projects are not only crucial for the region's
development but are also expected to significantly contribute to the overall
growth of the nation. However, in recent years, a troubling pattern has
emerged, casting a shadow over these much-anticipated plans.
Over the past few years, the government has
floated tenders for several key infrastructure projects, including road
networks, tunnels and hydroelectric power plants. These tenders generated
considerable excitement, as they signalled progress and the potential for
transformative changes in the region. However, this optimism has been
short-lived. After tenders are issued, they are often cancelled within a
specific period, leaving stakeholders frustrated and the projects in limbo.
This trend has been consistent and concerning, especially for projects that
were seen as critical to Jammu and Kashmir’s future.
A few notable examples highlight the severity of
this issue. The Singhpora-Vailoo Tunnel Project, a long-awaited tunnel planned
to improve connectivity between the Kashmir and Chenab valley, was initially
met with great enthusiasm. The tender was floated, but later it was cancelled
with no further clear explanation or timeline for when or if the project would
move forward. Similarly, the Sudhmahadev and Dranga Tunnel Projects, which were
expected to alleviate traffic congestion and enhance road safety were also
subjected to the same fate. The tendering process for these projects was
initiated, only to be cancelled months later, leaving both contractors and the
public in a state of confusion and disappointment.
There are ample examples like Khanabal-Pahalgam
Road, a critical infrastructure improvement aimed at boosting tourism and local
transportation. Despite the initial excitement surrounding the tender, it was
eventually cancelled, leaving the local population and the tourism industry in
uncertainty. Similarly, the upgradation of Chenani-Nashri Tunnel tender was
cancelled recently leaving all the stakeholders in a state of despair. Even
more concerning is the fact that, in many cases, there has been no clear justification
for these cancellations, nor has there been any effort to reinitiate the
tendering process in a timely manner.
One of the most high-profile examples of this
trend is the Sawalkote Hydroelectric Power Project (HEP). This project was
particularly significant due to its potential to generate substantial amounts
of electricity, which would greatly benefit the region, especially given Jammu
and Kashmir's frequent energy shortages. The government floated the tender for
the planning and design of the project and stakeholders, both local and
national were hopeful that this would be a turning point for the region's energy
infrastructure. However, just weeks after the tender was floated, it was
abruptly cancelled. The reasons for this cancellation remain unclear and much
like the other cancelled projects, there has been no official explanation or
timeline for any possible re-tendering.
This uncertainty has led to widespread concern
about the future of infrastructure development in the region. For the local
population, each project represents more than just a set of plans as it
symbolizes hope for improved living conditions, increased employment
opportunities and a brighter future. The repeated cancellations of these
tenders create a sense of frustration and loss of trust in the government's
ability to deliver on its promises. Furthermore, this inconsistency in the
tendering process discourages contractors and investors from participating in
future bids. When tenders are issued and then cancelled without clear reasons,
it creates an unpredictable environment that many businesses, both local and
national are unwilling to navigate.
From contracts perspective, the cancellation of
tenders after they have been issued can have serious consequences. According to
FIDIC guidelines, which are often followed for international infrastructure
projects, a fair and transparent procurement process is essential. The sudden
cancellation of a tender without proper justification can be seen as a
violation of the principles of fairness and equity, potentially leading to
legal disputes. Contractors who have invested time, resources and effort into
preparing bids are left at a disadvantage and the government's credibility is
called into question.
Similarly, under Indian Contract Act of 1872, the
issuance of a tender constitutes an offer that may be accepted or rejected by
the government. However, the abrupt cancellation of a tender without sufficient
cause can result in claims for damages, as contractors and other stakeholders
may have incurred expenses or suffered losses based on the government's initial
offer. This not only affects the financial viability of the projects but also
undermines the trust in the government's ability to honour its commitments.
The cancellation of the Sawalkote HEP Project, in
particular is a significant setback for Jammu and Kashmir. This hydropower
project had the potential to address the region's chronic energy shortages,
create jobs, and contribute to sustainable development. The sudden cancellation
of the tender has not only delayed the much-needed improvements to the region's
power infrastructure but also raised concerns about the government's commitment
to long-term projects. While there remains hope that the project will eventually
be retendered, the pattern of cancellations in the past few years has led many
to question whether this will ever come to fruition.
As the fate of the Sawalkote HEP and other
critical projects hangs in the balance, only time will tell whether the
government will take meaningful steps to restore trust and deliver on its
promises. For now, the region remains in a state of uncertainty with hopes that
future infrastructure development will not be derailed by the same pattern of
cancellations that has marked recent years.
