Monday, February 03, 2014

Grounded in favouritism

Times of India: Indore: Monday, February 03, 2014.
For Indore's Devi Ahilyabai Holkar Airport, stop-gap arrangement seems to have become a permanent fixture. A Delhi-based company which was given the parking contract for the airport, is being offered one after another extensions by Indore airport authorities. The contract given to the company way back in November 2012 just for two months, is yet to expire.
The airport witnesses a large number of four and two-wheelers everyday and the earning runs into several lakhs every month. It is one of the prime sources of revenue for the airport.
Documents received through RTI bring forth the startling fact. The Delhi-based company, minting money by handling the parking at the airport, has managed to extend the contract for six consecutive times in the last one and half years. As per the airport guidelines, contract to any company can not be extended for more than six months.
The RTI revelation is raising several eyebrows as to why the airport authorities are not awarding a regular contract for the purpose. A regular contract for parking is for three-years.
The documents received through RTI reveal that on June 26, 2012 Indore airport called quotation for stop-gap arrangement of parking, which was participated by five companies. Out of these, only the Delhi-based company was found technically qualified and was awarded a temporary contract for two months expiring January 2013 at licence fee of Rs 4.08 lakh per month with clause of extension of another two moths until March 2013.
Just few days before expiry of the contract, the company wrote a letter to Indore airport in March 2013, expressing interest in extending contract on the existing terms and condition. Indore airport, which was not able to finalize a regular contract, urged the company to increase the fee by 10% and finally the contract was extended for another three months with a revised fee of Rs 4.28 lakh per month apart from service tax.
Again just few days before expiry of contract in May 2013, the company urged the airport authorities to extended the contract on existing rate to which the airport authorities agreed and extended it till July 2013.
In the meantime, Indore airport invited tenders for regular contract for the parking in June 2013 and this time only one company participated. Though the Delhi-based company refused to participate in the tender process, yet again appealed the airport authorities on the eve of expiry of the temporary contract, to extend it offering a 10% hike in the existing fee. To a surprise of all, the airport authorities readily extended the contract till November 2013 on a fee of Rs 4.71 lakh per month and service tax.
The company has been awarded the extension on the plea that regular contract may take time to clear.
The documents received through RTI further reveal that the only company that was qualified in regular contract bid was not given the contract even after the company has revised its fee from Rs 4.31 lakh per month to Rs 5.05 lakh per month.
The company then wrote yet another letter to the Indore airport authorities just few days after opening of financial bid offering to continue contract with another hike of 7.5%. And the amount offered by the company was Rs 5,06,583 lakh per month which is just Rs 1,000 more than what the company that had participated in regular contract was offering.
Offer of a regular contracts was rejected and yet again the temporary contract of the Delhi-based company was extended for another three months till February 2014 at the rate of Rs 5.10 lakh per month.