Cancellation of Rs 4,000 crore contract approved by previous grand alliance government

PATNA: Bihar’s Public Health Engineering Department (PHED) has cancelled a contract worth Rs 4,000 crore, originally signed during the previous grand alliance regime, citing serious irregularities.

State Public Health Engineering Minister Neeraj Kumar Bablu on Friday said the department would float a fresh tender, aiming to complete the process within a month, with work beginning in August.

Providing further details, the minister said the previous contract, meant to ensure smooth supply of drinking water under the chief minister’s ambitious ‘Nal Jal Yojana’ scheme, was cancelled after a complaint was found to be valid.

An investigation has revealed that several villages and mohallas were not covered under the old tender. “Our department will ensure that these villages and mohallas are connected, ensuring that no house is left behind,” Bablu added. The cancellation is set to become a major political issue as the opposition RJD is planning to oppose the government’s move.