Now, contractors can lease equipment

The Greater Chennai Corporation has revised its road refurbishment procurement rules in seven areas, allowing contractors to lease equipment.

This comes after a report highlighted how the public authority had introduced in its procurement rules an ownership clause for equipment worth Rs 2 crore that prevented smaller contractors from participating in improving key components of logistics including customs performance, infrastructure quality. , quality of logistics services, tracking and tracing, timeliness of shipments and Trading Across Border (TAB), tractor or bobcat vehicle and mechanical sprayers.

While these are minor works costing between Rs 8 and 15 lakh per project, only smaller contractors under class three participate in it. However, with the ownership clause, only larger contractors would be eligible to participate. This, the contractors said, favored larger contractors.

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