Nepal’s Supreme Court rejects Tata Projects’ writ, upholds MCA-Nepal’s decision on power line tender cancellation

KATHMANDU: Tata Projects, the Indian company involved in the construction of the power transmission line project, has been granted relief by the Supreme Court, dismissing the writ filed against Millennium Challenge Account Nepal (MCA-Nepal). The Joint Bench of Justices Hariprasad Phuyal and Sharanga Subedi has dismissed the writ filed by Tata Projects, which sought an interim order against AMC Nepal’s decision to cancel the tender process due to the abundance of proposals exceeding the estimates.

The dispute arises from the cancellation of the contract by Tata Projects Limited, an Indian company involved in the construction of the electricity transmission line project.

Tata Projects Limited, responsible for the construction of the electricity transmission line project, had approached the court seeking interim relief against MCA-Nepal’s decision to cancel the tender process after receiving numerous proposals. The court had directed Tata to file a writ petition challenging MCA-Nepal’s decision.

The issue relates to the construction of power transmission lines proposed by Tata Projects Limited, an Indian company. Concerns were raised about the cancellation of all contracts related to the power transmission line construction in connection with the ongoing MCC funded projects.

In a notice issued on October 13 last year, the MCA-Nepal had informed about the cancellation of all contracts related to the power transmission line construction. The tenders for three phases, Lapsefedai-Ratamate-New Hetuda (Phase-1), Ratamate-New Dumauli (Phase-2), and New Butwal-Nepal/India Border (Phase-3), were canceled.

Challenging the decision through an interim order against MCA-Nepal, Tata Projects Limited sought the intervention of the Supreme Court to address the decision to cancel the tender process, claiming that it was made against the estimate. The company argued that they had proposed a minimum cost in two out of three sections.

In light of the higher costs proposed by Tata Projects Limited, the decision to cancel the tender process has been challenged, claiming that it is against the estimate. The court will now assess the situation and make further determinations.

The cancellation of the tender process by MCA-Nepal has posed challenges as it came after multiple proposals were submitted, and it has been met with legal opposition from Tata Projects Limited. The court’s interim order and the subsequent legal proceedings will shed light on the intricacies of the tender process and the reasons behind the cancellation.