The Tamil Nadu government is reviewing an elevated corridor on the East Coast Road that it may scrap, a scheme originally estimated at Rs 2,000 crore, equal to Rs 20 billion (Rs 20 bn). Tendering is under way for the eight point one four kilometre National Highways Authority of India project, which the authority estimated at Rs 1,241 crore, equal to Rs 12.41 billion (Rs 12.41 bn). Sources said the tender process for projects awarded over the past six months is being reviewed amid cost concerns.

Officials identified irregularities in the contract award process for the elevated corridor and other projects, and suggested the Thiruvanmiyur package was unlikely to proceed at the price quoted under the previous government. A Bhopal based firm filed a petition in the Madras High Court alleging its bid was rejected during financial evaluation despite being Rs 500 crore lower than the selected bidder, a gap equivalent to Rs 5 billion (Rs 5 bn) and about 25 per cent of the tendered cost.

Observers noted that National Highways Authority of India flyovers are built to stricter specifications to carry heavy commercial traffic, which can raise costs compared with state highways projects. A retired highways engineer said the lowest financial bidder may be rejected if it fails to meet eligibility conditions and that reasons for exclusion are normally communicated in writing, but the basis for overlooking the lower bid in this case remained unclear.

The Tamil Nadu State Highways Authority issued the Letter of Award in February and signed an agreement giving the contractor 180 days from award to commence civil works, with finance related certificates issued and construction scheduled for August or September if the contract proceeds. The high court had asked the aggrieved bidder to submit a representation and directed TNSHA to decide within ten days of receipt, but the representation was not filed within the court mandated period and the work order was issued to the selected contractor. Officials said the review of award procedures and costs will determine whether the scheme proceeds.