The Greater Chennai Corporation (GCC) has cancelled tenders worth approximately ₹600-700 crore, including the proposed Velachery flyover project, as part of a broader exercise to rationalise expenditure and ease financial pressure on the civic body, as reported in Dinamani.
According to Corporation officials, the decision forms part of the Tamil Nadu government’s ongoing efforts to streamline planning and spending in the Chennai Corporation following the formation of the TVK government.
The cancelled tenders primarily relate to capital-intensive infrastructure projects. Officials said these projects have been put on hold temporarily and will be reconsidered once the Corporation’s financial position improves, following which fresh tenders will be floated.
The civic body is also undertaking measures to streamline pending payments of around ₹2,000 crore owed to contractors. Simultaneously, special ward-level camps are being conducted across Chennai to improve the collection of property tax and professional tax in an effort to augment municipal revenue.
Officials clarified that only projects requiring substantial capital investment have been deferred. They said works that directly benefit the public, such as multi-level parking facilities and other ongoing civic projects, would continue without interruption.
The latest cancellations come a month after the Tamil Nadu government scrapped 35 tenders worth ₹284 crore for footpath construction in Chennai.
Those tenders were cancelled on the instructions of Chief Minister Joseph Vijay after alleged irregularities surfaced in the bidding process. According to the government, the tenders were cancelled over allegations that they had been tailored to favour certain contractors and that project costs had been artificially inflated.
With the state government continuing to review and cancel major Chennai Corporation tenders, attention has now turned to Chennai Mayor R. Priya and the Corporation’s future course of action as the financial restructuring exercise continues.
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