SURAJ NANDREKAR
suraj@herald-goa.com
PANJIM: Following the expose by Herald on March 6, 2016, the state government has finally issued a corrigendum decreasing the rate of the Bitumen (tar) by over 30 per cent.
International Bitumen (tar) prices reduced over 50 per cent in the last one year but PWD paid Rs 57,963 per metric tonne whereas prevailing market prices were hovering around Rs 21,000 to 25,000.
When contacted for his comments PWD Principal Chief Engineer (Officiating) Uttam Parsekar confirmed that the rates have been reduced but stated that he has no further details.
“I can only say the GSR rates of bitumen related works have been reduced but do not have any details off hand,” Parsekar said.
Superintending Surveyor of Works, PWD Ashok Daiwajna confirmed this. He said that according to the circular the GSR rate of bitumen which was Rs 57,963 per metric tonne prior to March 21, 2016 have been reduced to Rs 33,493.62, which is a difference of Rs 24,470 per metric tonnes.
Bitumen is the main component for roads. The PWD paid about Rs 25,000 per metric tonne over the market price to suppliers of bitumen. The implications are too obvious. This had caused a loss of nearly Rs 100 cr to the exchequer, according to sources. This is because almost Rs 250 cr worth work orders for hot-mixing and road widening have been given by the department in last 12 months.
This is at a time when the State finances are under severe stress due to mining revenue loss.
The PWD minister’s delay in changing the rates to be paid is serious since the Finance Department had moved a note asking for the prices to be reduced. PWD Minister Sudin Dhavalikar responded to the note by writing on the file “keep pending till budget”.
Thereafter, in a circular issued on March 21, 2016, 15 days after the Herald expose created ruckus in the Assembly, the PWD issued a circular stating “All the estimates which were technically sanctioned based on GSR 2011 (Roads) and GSR 2014 (Roads) shall be recasted as per the latest corrigendum issued for according fresh technical sanction.”
Sources said that due to the fall in prices of crude oil the prices of bitumen (VG-10 and VG-30), which is of 60-70 grade, have come down crashing since January 2015. However, the PWD continued to allot tenders at the GSR rate which was finalised in 2014, till March 2016.
Interestingly the Superintending Surveyor of Works, Mr Daiwajna said that since December the tenders for fifty per cent of the road contracts were held back for future reduction of prices.
“Almost 50 per cent of works were held back considering the fall in prices,” he said adding “the GSR prices cannot be reviewed every month as it is a lengthy process”.
But yet again, there could be another twist in the tale. “Now the trend is that the prices are going up and we would have to do the exercise of increasing the prices again”, said Daiwajna.
