HYDERABAD: The Kiran Kumar Reddy government on Friday received a setback for implementation of its prestigious Indira Jala Prabha (IJP) scheme meant to provide irrigation facility to about 10 lakh acres of land belonging to SCs and STs.The Andhra Pradesh High Court directed the government not to finalise tenders to procure submersible pumpsets under the IJP scheme till January 2, 2012. It posted the petition filed by the small scale industries to next Friday. The SSIs challenged the invitation of tenders by the government forprocurement of submersible pumpsets under the IJP scheme without taking them into consideration.The government contended before justice Noushad Ali that it invited tenders to procure submersible pumpsets worth Rs 280 crore. The suppliers have to maintain the pumpsets for four years. Companies with annual turnover of above Rs 50 crore are only eligible to file tenders by paying an EMD of Rs 10 lakh. The SSIs could not meet the requirements. The tenders were to be opened this afternoon.The petitioner (Flowell pump industries), which challenged the precondition of annual turnover of Rs 50 crore between 2008 and 2011 for making a bid, argued that it was against the government's principle of encouraging SSIs. It urged the court to direct the government to receive their tenders either as a consortium or a joint venture.
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