which was incorporated barely three years ago with a paid up capital of Rs 21.46 crores.
In lieu of this the company will be giving the Goa government a mere 5% of its turnover with no obvious minimum guarantee. The government on the other hand is going to acquire 8000 square metres of land at Reis Magos, from the Nerul Comunidade for this adventure and joy ride in addition to another 5000 square metres at the Panjim side. The valuation of land in range of Rs 70 / 80 crores has obviously not been calculated as a spend by the government and added to the costs that we as tax payers are incurring.
The government while announcing the decision of its cabinet said an agreement with Menus Adventures Private Limited, which has formed a consortium with Doppelmayr Garaventa Group, an Austrian company, for setting up a ropeway between Panjim and Reis Magos.
Several and pretty obvious questions can be raised at this point, and this is being done to ensure that the project does not attract controversy when it doesn’t really need to. But clarity on these points is non-negotiable.
1) Does a company incorporated only in June 2013, with no previous experience in doing a project of this nature and with a paid up capital of Rs 20 odd crores, inspire confidence to do this project?
2) Why did the government settle for a mere 5% of the annual gross turnover and not charge a fixed lease rental since it is acquiring and giving land for the project anyway. This arrangement of 5% of gross turnover has chances of gross manipulation.
3) The Mandovi River on which the ropeway/cable car service will be built will come under the National Waterways. Permissions will be required to install tower/cable crossings from Captain of Ports, Inland Waterways, Surface Transport, Navy and the Coast Guard. Have these permissions been applied for?
Meanwhile, a close look is needed to see if there have been any violations of PPP guidelines for this project. In the DPR, Consultant Darashaw has recommended M/S Doppelmayr Gravanak as a partner as Drawshaw does not have any expertise in the subject. Therefore M/s Doppelmayr Gravanak becomes a “Consultant” of the project and cannot bid as Concessionaire (Developer). But the same M/s Doppelmayr Gravanak has tied up with Menus and bid for the project which could be against PPP Guidelines issued by Govt of India Finance Dept. A consultant cannot be a Concessionaire.
The government needs to immediately clarify on all of the above.
The GTDC needs to come clean on the bidding process and the reasons for choosing Menus Adventures Private Limited (Menus) for such a big project, billed as the biggest ticket project to boost Goa’s tourism. Menus, according to industry sources, does not have a single rope way/cable car project installed and commissioned in India as on date of submission of bid, and yet a deal has been inked with them.
For a project of such sensitivity and scrutiny, the government has no choice but to take the route of total transparency on this project and take time off to deliberate and respond to each of these discrepancies and doubts raised.
