The contract amount for six major dams, for which tenders were released on Tuesday, goes to prove that the government would have incurred losses to the tune of over Rs 20 crore if it is not forced to follow the tender procedure. Tenders for the rest of the 42 dams, including mid and small sized dams, were released on Wednesday.

Earlier, for the first time, contracts had been allotted to groups and individuals by doing away with the Government Leasing Policy for Reservoirs of Inland Fisheries-2004, which insists on tenders. The government had then claimed that its tender procedure hurts sentiments of people associated with religious groups.

The extent of loss can be gauged by the fact that the rights for the biggest reservoir, Bhadar Dam in Rajkot district (4,459.2 hectares), was given through tender processsor Rs 95 lakh. Rights for the same dam were given for Rs 3 lakh in July last year without inviting tenders.

Similarly, rights for Aji-III Dam, which were given for just Rs 1.5 lakh through auction, fetched Rs 46.5 lakh. Machchu Dam rights were given for Rs 30 lakh instead of Rs 1.35 lakh earlier; contract price for Fofal Dam touched the mark of Rs 16 lakh as against the auction amount of Rs 1.64 lakh; Sipu Dam rights were sold for Rs 78.6 lakh instead of the upset price of Rs 1.99 lakh; and Vartak Dam got the highest bid of Rs 27.51 lakh. Rights for the same dam were given for Rs 2.96 lakh.

Contracts allotted through auctions by the government were rejected by the High Court, and subsequently, the Supreme Court ordered it to issue tenders for the same. Although the apex court had directed the government to issue tenders in November 2008, the latter cancelled the procedure at the eleventh hour on January 13 without citing any specific reason.

The bidders challenged it in the High Court, which issued a showcause notice to the government, asking it should not be punished for contempt of court. The HC had asked the government to respond by February 15.