Andhra HC Orders DRDO Review of ₹1 and Other Abnormally Low Defence Bids
What Happened
The Andhra Pradesh High Court has directed DRDO to review abnormally low bids in defence procurement projects, ruling that contracts cannot be awarded solely on the basis of the lowest quote when there are doubts about a bidder's ability to execute the project. The case arose from a tender for the development of Processor-Based Moored Mine-Next Generation (PBMM-NG) systems, where bids included extremely low quotations, including a reported ₹1 bid in a related defence procurement context. The court held that DRDO must conduct the mandatory viability assessment required under its procurement rules before awarding contracts.
Key Takeaways
The ruling emphasizes that in defence procurement, execution capability matters as much as price. DRDO must assess whether extremely low bids are commercially viable before finalizing contracts.