BDA issues letter of acceptance to L&T for steel flyover project

Despite increasing opposition from various quarters, the state government is swiftly going ahead with implementing the steel flyover project.

The Bangalore Development Authority (BDA) has issued a letter of acceptance (LOA) to L&T, the company which has bagged the tender to execute the steel flyover project from Basaveshwara Circle to Hebbal.

L&T had entered into an agreement with Nagarjuna Construction to implement the project. After the Cabinet approved the project , the length of the flyover was extended till Esteem Mall and only recently, till Columbia Asia Hospital on Ballari Road.

Original plan

A BDA official told DH that the LOA was issued based on the original plan and it is part of the procedure. There is a clause in the tender document for extensions and variations, so additions should not be a worry.

However, when the work order is issued, further details will be added.

“Ideally, LOA should be given soon after the tender was accepted and negotiations were over. But it got delayed as the government clearance was awaited. Now, we have asked L&T to furnish details of the company and give performance bank guarantee of 5%. This will be scrutinised and then the agreement will be signed,” the official said.

The BDA is not taking all decisions on its own like it does normally, but is consulting the state government and Bengaluru Development Minister K J George. By doing this, the government claims to be bringing in transparency.

“After receiving the details of work from L&T on how they will execute the project, the file will be submitted to the government and then the Cabinet will decide. After this, work orders will be issued and work on the ground will start. However, issue of LOA also means that work can start any time. Work order will be issued at the earliest to L&T,” the official said.

The BDA officials in the meantime are also preparing the detailed project report on the 1.65-km extension of the flyover which will be tabled before the Cabinet for approval. The official pointed out that they were looking into suggestions made by experts on adding underpasses at some locations. All these are being examined before making the DPR.

What is Letter of Acceptance

Letter of Acceptance simply means a confirmation letter issued by the BDA to the company stating that the tender has been accepted and the company, with the lowest bid, will be executing the work. It is a form of official communication between the two parties.