Bengaluru tunnel road project: DK Shivakumar faces big test over Adani bid
The move needs the nod of Rahul Gandhi, who has been slamming Adani for his 'unholy nexus' with PM Mddi and other projects
DK Shivakumar, who will take oath as Karnataka Chief Minister on Wednesday (June 3), is set to face his first major political test when he needs to decide on approving the Adani Group’s bid for his pet twin tunnel road project in Bengaluru.
Despite opposition from several quarters, including citizen groups and the BJP, for the Rs 17,698 crore project, Shivakumar, who was in charge of Bengaluru development under Chief Minister Siddaramaiah, has maintained that the proposed tunnel road from Silk Board junction to Hebbal would "transform mobility" in Bengaluru.
For leaders of the Congress, including the Leader of Opposition in Lok Sabha Rahul Gandhi, who have routinely criticised Gautam Adani in tandem with Prime Minister Narendra Modi, the question now is whether or not to award the tunnel road project to a company owned by Gautam Adani.
Also read: Tejasvi Surya meets Shivakumar, urges scrapping of Bengaluru tunnel road project
According to him, the 16.75-km signal-free tunnel would allow commuters to bypass over 25 traffic bottlenecks, saving more than 45 minutes of travel time daily, and provide direct access to the city's IT corridor.
Adani’s bid higher than govt’s estimated cost
The tender was floated by Bengaluru Smart Infrastructure Limited, which is responsible for the construction of the tunnel road from Esteem Mall at Hebbal to Silk Board.
The Adani Group submitted the lowest bids for both packages of the Bengaluru tunnel road project. However, since the quoted amount is 24 to 28 per cent higher than the government’s estimated cost, the process of finalising the contract is delayed. The Cabinet will have to decide on the cost escalation.
Also read: Tunnel road will reduce traffic congestion in Bengaluru: Karnataka Governor
The irony is hard to miss: Karnataka, ruled by the Congress, is also the state where the Adani Group has made some of its largest investments across sectors and plays a significant role in the state’s economy. This has left the government in a bind while considering the bids.
Rahul has often attacked Prime Minister Modi for "favouring" Gautam Adani and also alleged a "nexus" between the two. Recently, he claimed that Modi had "sold out" India to the US and was trying to get a case against Adani in America closed.
''Take it in writing. In the near future, Adani's case, currently pending in the US, will be dismissed. Why? Because Narendra Modi has sold out India, along with its poor, its farmers, labourers, unemployed youth, our data and everything to America – all to get Adani's case closed. Modi has handed over our entire agricultural system to America. Very shortly, the Adani case will be dismissed by Donald Trump,'' Rahul said last month.
Merely because the Adani Group has submitted the lowest bid (L1 bidder – the company that quotes the lowest price), awarding the contract is not mandatory. The Supreme Court has laid down clear principles in landmark judgments such as Tata Cellular vs Union of India (1994) and Jagdish Mandal vs State of Odisha (2007). The court has held that in tender processes, the government has the discretion to decide on awarding contracts in accordance with the tender conditions, and that courts should not ordinarily interfere in such matters.
Rahul’s approval crucial
Adani Enterprises Ltd (AEL), the lowest bidder for the PPP tunnel road initiative, is carrying out a survey and soil testing at the project site, even as its bid is pending before Shivakumar for the first level of clearance, according to a report in Economic Times.
Companies owned by Gautam Adani have already invested more than Rs 20,000 crore in Karnataka. The group has announced plans to invest Rs 1 lakh crore over seven years, from 2022 to 2029.
The Adani Group has invested in Karnataka across renewable energy, cement, airports, port development projects, city gas distribution, edible oil (Adani Wilmar), transportation and logistics.
With the Adani Group already investing crores of rupees in the state, many feel Shivakumar may give the nod for Adani’s bid. However, Rahul’s approval would be crucial.