CVC to inquire Pune Metro Rail procurement tender

New Delhi (Urban Transport News): Jindal Steel and Power Limited (JSPL) has filed a complaint with the standing committee for implementation of public procurement alleging that Maharashtra Metro Rail Corporation (Maha-Metro) changed the initial bid requirement in a tender for supply of head-hardened rails. The JSPL pointed out the condition of the bid that a bidder should have supplied at least 18,000 tonnes of head-hardened rails in the past seven years to other countries, to 22,500 tonnes.

The complainant claims to have supplied close to 20,000 tonnes of such rails to the Iranian Islamic Republic Railways. Therefore, the company would have qualified under the previous criterion, but not the revised one as amended by the Maha-Metro. Based on the complaint filed by the JSPL, the standing committee for implementation of public procurement has asked the Central Vigilance Commission (CVC) to look into Maha Metro’s tender for procurement of rails for Pune Metro Rail project, as the committee has observed that conditions were revised to make them restrictive for local manufacturers, a move that “seems to be with a malafide intent”.

The committee has asked the CVC to take “strict action against erring officials”, according to minutes of a meeting held earlier this month. In a meeting held earlier this month, the Ministry of Housing and Urban Affairs (MoHUA) informed the committee that it has taken up the matter with the authorities concerned and issued directions to ensure tender conditions are not restrictive for local manufacturers, according to the minutes of the meeting (MoM).

According to the tender notice, one of the requirements in the initial bids was that a company should have supplied at least 90,000 tonnes of rails during the last seven years, of which 45,000 tonnes should have been supplied to countries outside the country of production. After the amendment, the other requirements included that of the rails supplied to overseas countries, 18,000 tonnes should be of international standard as required for the Pune project.

While the first clause was retained in the revised tender, the second was amended. Commenting the case, Brijesh Dixit, Managing Director of Maha-Metro has clarified that the initial number of 18,000 tonnes was a typographic error made by a lower level official, and that action is being taken against him. There is no malafide intent and the Maha-Metro has not received any communication from the CVC. Maha Metro has briefed MoHUA officials about the typographical error.

Dixit further said that the figure of 22,500 tonnes was arrived at as per the standard formula which is followed by all other metros including Delhi Metro, Chennai Metro, Bangalore Metro, Kochi Metro, and Lucknow Metro. The Maha- Metro is following the international norms as the Pune Metro Rail project is being funded by international agencies.