Haryana to decide fate of Rs 700 cr contract

Nov 25 2012, 15:39 IST
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SummaryThe High Powered Purchase Committee of Haryana Government would decide the fate of Rs 700 crore mega water supply pipes contract before December 17

The High Powered Purchase Committee of Haryana Government would decide the fate of Rs 700 crore mega water supply pipes contract before December 17.

Highly placed sources in the Haryana Government told here today that the HPPC would “reconsider”the award of an annual rate contract of Rs 700 crores to a single firm-Jindal Saw Limited for supply of ductile iron (DI) pipes that are used for drinking water supply.

At least six affected companies had submitted a memorandum to the Chief Minister, Bhupinder Singh Hooda raising new issues.

They allege that “the Public Health Engineering Department while presenting the case to the members of the High Powered Purchase Committee had misrepresented the factual position thereby misleading them to take an irrational decision to award the Rate Contract to Jindal Saw Limited”.

The Department in an apparent bid to benefit Jindal Saw Limited placed additional orders worth almost Rs. 100 crores at the fag end of the Rate Contract valid upto May 29, in April and May 2012 on JSL. The memorandum alleged that the additional requirement clandestinely placed upon Jindal Saw Limited has not been delivered till date and the request for extension made by this company has also been declined by the Department and penalties are being imposed upon them.

Interestingly, the department also relied upon Jindal Saw Limited’s assertion with regard to its future expansion activities which was accepted by the HPPC as is evident from the minutes of the meeting of October 8. As per the recorded minutes “a representative of this firm requested to allot annual rate contract to them for the total requirement quantity of pipes of sizes 100mm to 1000mm on the plea that they have sufficient capacity to supply total requirement of D.I. pipes and had also stated that the manufacturing capacity specifically in small diameters would be further enhanced with the coming up of their another plant of D.I. pipes”.

The fresh memorandum given to the chief minister had alleged that while retaining a single party-Jindal Saw Limited by the Public Health Engineering Department, it had failed to take note of its past performance in executing orders, its capacity and capability to produce and supply material based on the information submitted along with the bid documents and decided to award the Rate Contract to JSL in an arbitrary mala fide and irrational manner without

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