Megha Engineering's Electoral Bond Buys Linked to Major Project Contracts

New Delhi, Mar 22 - Megha Engineering and Infrastructure Ltd (MEIL), a Hyderabad-based firm, has been identified as the second-largest purchaser of electoral bonds, with acquisitions amounting to Rs 966 crore, as per the latest data from the Election Commission of India (ECI). This revelation comes in light of the company securing significant infrastructure projects, including the prestigious all-weather Zojila tunnel in Jammu and Kashmir, estimated at Rs 4,500 crore.

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The ECI's disclosure on Thursday highlighted that MEIL allocated the largest share of its donations through these bonds to the Bharatiya Janata Party (BJP), contributing approximately Rs 585 crore. This was followed by donations of Rs 195 crore to the Bharat Rashtra Samithi (BRS) and Rs 85 crore to the Dravida Munnetra Kazhagam (DMK).

Records indicate that MEIL purchased bonds worth Rs 20 crore in October 2020, coinciding with the period it was awarded the contract for Asia's longest bi-directional road tunnel project in Jammu and Kashmir. Furthermore, in March 2023, the company secured a Rs 3,681 crore contract for constructing a bullet train station at Bandra Kurla Complex (BKC) in Mumbai. Subsequently, in April 2023, MEIL made its highest bond purchase of Rs 140 crore.

In November 2019, MEIL was also successful in obtaining the Rs 4,358 crore Polavaram project in Andhra Pradesh through a reverse tendering process initiated by the state government. The company had bought bonds worth Rs 5 crore in October 2019.

Besides these major projects, MEIL has undertaken several infrastructure ventures across Uttar Pradesh, Uttarakhand, Gujarat, and Madhya Pradesh. The firm has extended its support through electoral bonds to various political parties across the spectrum. Notably, it donated Rs 195 crore to BRS, which held power in Telangana until recently. The DMK in Tamil Nadu received Rs 85 crore, while the YSR Congress Party led by Jagan Mohan Reddy in Andhra Pradesh was given Rs 37 crore. Other recipients include the TDP with about Rs 25 crore and the Congress with Rs 17 crore. Smaller sums ranging from Rs 5 crore to Rs 10 crore were donated to parties like the JDS, Jana Sena Party, and JDU.

Founded in 1989 by industrialist Pamireddy Pitchi Reddy as Megha Engineering Enterprises, the company initially manufactured pipes for municipalities before rebranding to Megha Engineering and Infrastructure Ltd in 2006. Since then, it has expanded its portfolio to include dams, natural gas distribution networks, power plants, and roads among other infrastructure projects. A query sent to MEIL regarding these developments has yet to receive a response.