Shimla water supply handed over to MNCs, FAC allege’s kick back
Himachal Pradesh Urban Development Department decided to handed over Shimla greater water supply to a multinational company. The form against corruption (a social legal group) termed the deal an alleged major kick -back to ruling party in wake if upcoming Assembly Election which bypassed the global tender norms. In press statement issued here today conveyor of FAC and former Deputy Speaker Tekinder Singh Panwar said that the alleged deal smacks corruption as it was being done in ballent violation of norms in a performance-based contract. In a letter shoot to Chief Secretary R D Dhiman before the Borders of Directors of Urban Development Department gave consent to this project Mr Panwar alleged that their concern of privatization or transformation of Greater Shimla Water Supply and Sewage Circle into Shimla Jal Prabandhan Nigam Limited are coming true.” SJPNL is turning out into a den of corruption to appropriate massive profits for the ruling party in the state,” he blamed. The letter warned Chief Secretary of the latest issue of the performance-based . SJPNL published a tender- a “Performance Based Contract for Implementation of Continuous Pressurized Water Supply” for Shimla on July 27, 2022. The estimated value of the tender was Rs 442 crore. Two firms submitted the tender on September 27 and on the same day technical bids were opened by the department. On October 1, the urban development department declared both firms as qualified. The financial bid of both firms was opened on October 6, 2022. Mr Panwar said that under an open bidding process, bidders get access to check the competitors’ documents and report any misconduct if found. However, SJPNL did not allow that to happen, thus marring the process of transparency which smacks of handing over the contract to one of its cronies. Objecting the deal stuck in tearing hurry he alleged that SJPNL declared the result of the technical evaluation within four days despite not giving access to bidders, which is totally against the process. The normal time period in such a scenario is of 45 days. However, the government is determined to push the matter at a pace just to ensure that transparency is scuttled. The price of the lowest bidder including the Capex(Capital expenditure) and O& M (Operation and Maintenance) cost is almost 33 per cent above the estimate of the project value by the department. As per the office memorandum of the government of Himachal Pradesh dated January 10, 2020, the ultimate objective of tendering exercise is to encourage competition and reduce cost, it further states that low participation in the 1st call i.e., two or less tenderers, tenders should be re-called”. Hence, awarding of the tender at this stage in such a hurry at the 1st call at such a high cost and in violation of the norms set by the Himachal Pradesh government itself is extremely unjustified and would be a heavy loss to the state government due to the substantially high rates quoted by the bidders which are well above the project cost that has been estimated by the department. This is a huge loss to the state exchequer, which should not be allowed at all. The estimated cost by the department including Capex and O&M was around Rs 592 crore, whereas the cost that the government would have to bear as quoted by the lowest bidder would be to the tune of Rs 786 crore approximately. Thus it will be a straight loss of around Rs 200 crore.
FAC blamed the state government, it seems like the department of urban development is in a hurry to award the tender before the code of conduct for the upcoming elections is announced . Mr Panwar said that department called BODs meeting today and cleared the tenders process to push ahead the deal and to issue the letter of intent to one of the bidders. He said that this does not go in right earnest and should be opposed by all means. The FAC warns the government to stop this cronyism and ensure fair play as the norms suggest. FAC also urged Chief Secretary to intervene in the matter immediately ensuring that the process is stopped forthwith and a fresh bid is sought.
The FAC also warned the department that in case it goes ahead with its sinister design, the FAC will be forced to knock at the High Court of Himachal Pradesh to get justice delivered to the state and its people.