GSWB decides to re-tender power project, Minister Milind overrules it

Chief Electrical Engineer says severe complaints alleging irregularities in tender process; Minister says he sees no reason for rejection on technical ground of visibility of bid price

PANJIM: In another shocking revelation in the Electricity Department tender scam, Herald has obtained possession of the minutes of the meeting of the Goa State Works Board and the notes of Power Minister which suggest how the tender was rigged.
The minutes of the GSWB meeting held on June 21, 2016, at 11 am, chaired by Finance Secretary Daulat Hawaldar, Power Secretary Kunal, Additional Secretary Finance Michael D’Souza and Chief Electrical Engineer Dipak Bhajekar decided to re-tender the works due to several discrepancies.
However, despite this decision Power Minister Milind Naik decided to go against the decision and allot the tenders.
During the presentation, the Chief Electrical Engineer pointed out that financial bids were visible on the website when the techno-commercial bid was opened and accordingly clarification was sought from the IT Department for its correctness.
“It was informed by the IT Department that due to the technical error, the financial bids were opened and could be seen by the participants only by using digital keys. During the techno-commercial discussion the same was brought to the notice of all bidders and a No Objection letter to open the financial bids was obtained from all the bidders in order to avoid re-tendering process,” state the minutes of the meeting.
The Chief Electrical Engineer then informed that there are severe complaints alleging irregularities in tender process.
“The GSWB after analysing all the facts as above, decided that entire package should be re-tendered and while doing so due codal process should be followed,” the minutes of the meeting said.
However, despite the financial bids of the three tenders being visible before they being officially opened, the Power Minister saw nothing wrong and wanted the government to go ahead with the tendering.
“As technical qualification of above mentioned three bids was accepted and no changes could have been made or possible to be made, even though final price was visible, I see no reason for rejection on technical ground of visibility of the price,” Power Minister Milind Naik said in his note, copy of which is in possession of Herald.
Further, he stated, “In fact bid of M/s Voltas Ltd was rejected based on financial non-compliance and if this aspect is verified, then I see no reason for carrying out the tendering process afresh.”
The Goa Lokayukta Justice Misra had ordered a stay on the Rs 328 cr worth tenders of the Electricity Department after finding discrepancies in the tendering process. The Lokayukta has also turned down the government request to vacate the stay. On Friday he, however, disposed off the petitions (see accompanying story).
Investigations had revealed that the Electricity Department had floated an online tender for electrical works in sub transmission and HT/LT distribution networks dated January 29, 2016. 
Three companies, Voltas Electric, KEI Cables and L&T were shortlisted after technical evaluation. As per the procedure specified by the CVC and the CPWD manual, the financial bids were to be opened on a specified date and time after intimation and in presence of the bidder’s representatives.
However, in disregard and defiance of the rules, the financial bids were tampered and opened before the bids were to be officially opened. All the three bidders had quoted around Rs 185 crore for the said tender. Voltas Electric quoted Rs 185.40 crore, KEI cables quoted Rs 186.28 crore and L&T quoted Rs 186.63 crore.

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