The new parliament building will be constructed by Tata Projects at a cost of Rs 861.90 crore.
The Tatas beat Larsen and Toubro, who had submitted a bid of Rs 865 crore.
The Central Public Works Department opened the financial bids for the construction of a new parliament building today.
The project is likely to be completed in a year.
The government civic body had estimated a cost of Rs 940 crore.
The new building is said to be designed as a triangle.
The current parliament building, built during the British-era, is circular. The building would be used for other purposes after it is repaired and renovated, say officials.
Earlier this year, the government had justified its decision to build a new parliament building saying the current structure was “showing signs of distress and over-use”.
Also, the Lok Sabha was likely to have more numbers after the reorganization of constituencies, and the current building had no space for an extra member in the house, the government said in response to opposition questions.
The new parliament building is part of the centre’s central vista beautification project that has provoked opposition protests and has also been challenged in court.