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Polavaram tenders, a case of ‘quo pro quid’ ?? నవంబర్ 1, 2012

Posted by M Bharath Bhushan in Andhra, biodiversity, Congress, corruption, Godavari, indigenous, Polavaram, politics, Telangana, TRS.
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Polavaram tenders, a case of ‘quo pro quid’ ??
by A Saye Sekhar, Frontpageindia.com Oct 31,2012

Transstroy India Ltd was selected for the execution of the massive Polavaram project. The project tenders became controversial twice and the Government had cancelled the tenders following legal intervention. In fact, the tender was given to SEW Infrastructure of CL Rajam, who is Chairman of Namaste Telangana newspaper and a close associate of Telangana Rashtra Samithi (TRS) president K Chandrasekhar Rao.

When the Government cancelled the earlier ones and called for tenders afresh, Transstroy India Ltd in which Guntur MP Rayapati Sambasiva Rao, has interests, and Soma Constructions came as L1 and L2. After the techno-economic analysis, the Engineer-in-Chief of multi-thousand-crore Polavaram Project awarded the execution order to Transstroy India Ltd, which was asked to submit the project schedule within 15 days.

Rayapati Sambasiva Rao, who became controversial with the charges made by small time actress Tara Chowdary, was actually aspiring to become a minister in the Central Cabinet. He in fact announced soon after he understood that was denied a berth that he would take a decision on the future course of action after discussing with his brother Rayapati Srinivas, who is an MLC, and supporters.

Meanwhile, the olive branch came in the form of Polavaram Project. Now the MP must be basking in the afterglow of achieving the project for ‘sacrificing’ the ministerial position. If he ‘sacrifices’ the project for the ‘ministerial position’, it would have been a quid pro quo arrangement. But now, what do we call this? A quo pro quid?

source: http:http://www.frontpageindia.com/grapevine/a-quo-pro-quid/42292

related stories:
Polavaram contract goes to Transstroy
By Express News Service, Hyderabad, 1 November, 2012

The major irrigation department finalised the Polavaram project tenders in favour of Transstroy Company on Wednesday. Initially, the high-level committee had not opened the price bid of Transstroy, one of the six consortia which filed the tenders, as the company was found technically not fit.

The price bids of Soma CGG and SEW were opened and declared as L1 and L2. But the government later changed its mind and opened the price bid of Transstroy which quoted 14 per cent less than the tender value of Rs 4,717 crore.

It is learnt that Transstroy belongs to Congress MP Rayapati Sambasiva Rao who was denied a berth in the Union cabinet in the recent reshuffle.

Another company which did not file tenders, China Railway Eighteen Group-BSCPL (joint venture), went to the High Court seeking a stay on all further proceedings, including award of project works in pursuance of tender notice dated April 16.

The matter was posted for hearing on November 5.

Six consortia participated in the bidding: Gammon-Chirkey Gesstroy (Russia)-AMR JV, IVRCL-Farab (Iran), Madhucon-Sinohydro (China), Sew-Patel, CGGC (China)-Soma and Transstroy (India) Ltd-JSC Engineering Centre Ues (Russia).

Before the next hearing of the case, the government awarded the contract to Transstroy. Transstroy executed some irrigation works in the state which included Sri Komaram Bhim project and construction of the Chagallu Barrage to a capacity of 1.50 tmcft.

Source: http://newindianexpress.com/cities/hyderabad/article1322205.ece

Transstroy to get Polavaram deal, by N. Vamsi Srinivas, Deccan Chronicle, October 5, 2012

The state government is all set to award the contract for the Rs 4,717-crore Polavaram dam to the Transstroy India-led joint venture. The administration top brass has apparently given approval in principal to award the contract to Transstroy, which quoted 14.5 per cent less than the estimated value. This will mean a saving of Rs 700 crore to the state exchequer. Congress MP from Guntur Rayapati Sambasiva Rao has major stakes in Transstroy that has executed several irrigation and infra projects including a portion of the Outer Ring Road.

Official sources told this newspaper that Chief Minister N. Kiran Kumar Reddy was also convinced with the argument of the high-level committee headed by chief secretary Minnie Mathew that financial implications alone should be taken into consideration as all the five bidding companies had some shortcomings or the other in the technical side.

Transstroy had made a dramatic entry into the race for the multipurpose irrigation project. The engineers’ committee had disqualified the company along with two others on technical grounds and had opened the financial bids of Soma and SEW. Of the firms, Soma had stood L1 (lowest bidder) by quoting just two per cent less than the contract value.

The government later came under fire for shortlisting only two companies and Opposition parties alleged that the state would lose Rs 478 crore if Soma’s tender was approved. Subsequently, the high-level committee, which also comprises principal secretary of finance V. Bhaskar and principal secretary of irrigation S.K. Joshi, decided to open the financial bids of all five competing firms.

Sources said that the Chief Minister would be comfortable with awarding the contract to Transstroy as the state would be saving Rs 700 crore. “Even the two companies shortlisted by the engineers’ committee had certain deficiencies,” sources said, adding that the same would be highlighted if any of the companies took a legal course.

Apparently, keeping in view the allegations about Transstroy’s previous track record, the state government will be extra cautious while awarding the tender and will secure adequate financial commitments from the company in case of a failure to execute the project properly.

source: http://www.deccanchronicle.com/node/161586

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