TN: Tangedco violates the rules of e-tenders, urgency in floating tenders raises suspicion
The conditions set in the e-tender produce no domestic supplier competing for it.
The Tamil Nadu government has suffered other shame after a very famous e-tender process reaches legal obstacles. The Tamil Nadu Generation and Distribution Corporation (Tangedco) has been responsible for the rules, including 30 days of mandatory time to submit a tender.
e-tenders eliminated domestic suppliers from competing
The Madras High Court postponed the opening of the e-tender to get 20 lakh tons of imported steam coal worth Rs 1,330 crores. The conditions set in e-tenders eliminated domestic suppliers from competing for it.
Arappor Iakkam (API), the movement of people
Arappor Iakkam (API), the movement of people, marks the e-tender for norm violations. It was followed by an intervention by the court that arises because of the writ petition submitted by an organization.
API also increased suspicion of the urgency shown by the company in the procurement of coal for thermal stations to be submitted at Kamarajar Port in Ennore between May 2021 and May 2022.
Court denied permission to Tangedco to open an e-tender
After hearing the writ petition, the court denied permission to Tangedco to open an e-tender on the date scheduled for February 23. The e-tender was published on February 8, only leaving 16 days for the auction participants to participate.
The order directed the corporation to issue the Corrigendum to extend the last date to submit a tender by 15 days. The corporation has now extended the last date to send tenders until March 10.
Tamil Nadu transparency in tender action
Jayaram Venkatesan from Arappor Iakkam said, “The order is passed based on rule 20 in Tamil Nadu transparency in tender action which requires a minimum of 30 days of time to be given for the submission of tenders valued by RS two Crore.”
The organization also accused the e-tender had no approval from the Tangedco body but ratified after the ad was published. The government has been accused of improving tenders in the highway department. Chennai Corporation is also thought to have pampered itself in a floating e-tender after working completely.
The urgency in floating tenders?
The point of other disputes is urgency in floating tenders for the procurement of coal needed from May this year. Tangedco argues that the implementation of the model code of conduct can delay the procurement process but API questions “unusually fast” processing.
“The needs from May 2021 to May 2022; Even if the code of conduct is a threat that can be called by the government to respond for two months now. The recent increase in coal prices, which almost doubled in the international market, can finally increase production costs , which can be forwarded to consumers, “Jayaram added.
The clause was introduced to reject local bidders
The tender included two new clauses, mandating the ownership of the original export license and direct delivery to Tangedco. Both of these conditions can effectively distance the domestic players and only support international companies in this sector.
“The merging of both clauses will effectively eliminate domestic suppliers because they may not have a license and have logistics to be sent directly to Tangedco. The conditions are contrary to the general finance rules and Make In India, 2017 ordered public procurement”, accused Mr.Jayaram.
Tenders are not published in Indian trade journals, mandatory procedures for tenders worth more than Rs 75 Crores, alleged API. Violations of existing rules have become routine in the current AIADMK regime, opposition parties often accuse.
The corruption that leads to losses in Tangedco
“Corrupt practice” in Tangedco pushed the corporation deep into losses, the API accused. The organization claimed that the government lost around Rs 6,600 Crores due to the practice of incorrect coal imports between 2012 and 2016. The corporation was reported to buy coal at increased prices which led to losses.
Lockdown due to the Covid-19 pandemic has also played a role in increasing the loss of corporation
The loss of Tangedco is estimated at Rs 12,623 Crores for 2018-19. Lockdown due to the Covid-19 pandemic has also played a role in increasing the loss of corporation by Rs 1,260 Crores during April 2020.
The lack of government transparency in carrying out tenders and projects along with the privatization of several works in the corporation has damaged the effectiveness of the department.
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