Rules flouted for over a dozen Konkan dams: RTI

Times of India: Mumbai: Tuesday, 02 December 2014.

The Konkan Irrigation Development Corporation (KIDC) moved unusually fast to approve revised rates, issue tender notices, finalize pre-qualification bids and approve bids of dam projects, each within a few days, or in some cases, overnight.

New documents reveal how tender conditions were flouted, tweaked and costs of irrigation projects arbitrarily increased by KIDC between 2008 and 2011.

These papers procured under the Right to Information Act (RTI) by Aam Admi Party member Anjali Damania show how KIDC undermined the tender process in more than a dozen projects.

In several cases, the corporation floated tenders, awarded contracts and issued work orders for projects planned two to three years later. The contractor would still demand a higher cost during the interim period though work was yet to start.

In other projects, KIDC increased the cost after opening the bids and increased the scope of work even before work started. In one case, tender forms were distributed to contractors a day prior to the tenders being officially announced.

In every tender, the selected contractor was allowed to quote 40% to 45% more than the estimated cost. Rules stipulated that any quotation 15% over had to be referred to a finance and planning committee for approval. This rule was frequently circumvented by increasing the project cost. The pattern was common in all the major projects approved in the Konkan region, like Kalu, Shahi, Balganga, Kondhane and Chanera. All these projects were won by two firms belonging to the same family, F A Construction and F A Enterprises.

For Kalu dam, work order was awarded without land acquisition. Norms say no work on any dam project can start without mandatory clearances and land acquisition.

KIDC was also found to have floated tenders regularly without mandatory forest clearances, flouting a Union environment ministry rule.

In the Shahi project, the contractor was tasked with procuring clearances from the state water regulatory authority as well as the forest department and get funds allotted from the Thane Municipal Corporation. Later, these conditions were removed. A fresh work order was issued two-and-a-half years after the original work order and after the project had commenced.

In the Balganga project too, approvals for floating tenders were rapid. Also, the date for sale of pre-qualification forms of the tender was declared between February 27 and March 6, 2009. The date of publicity for the tender notice was February 28, 2009. This shows sale of pre-qualification tender forms happened a day prior to the tender notice.