Wednesday, July 26, 2017

Corruption and Irregularities in Tender Process in OPTCL

Complaint in the matter of selection of  Final Bidder M/s High Tech Systems & Services for supply of “12 nos. new design ERS Towers suitable  for 400kv transmission line network  of OPTCL
To
The Chief Secretary
Govt. of Odisha
Secretariat, Bhubaneswar

Sub- Seeking an Inquiry into huge corruption and irregularities in the matter of selection of Final Bidder M/s High Tech Systems & Services for supply of “12 nos. new design ERS Towers suitable for 400kv transmission line network of OPTCL as per Tender (No. Sr. G.M.-CPC-ICB-ERS-24/2015) for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network for OPTCL

Dear Sir
I would bring to your kind notice the abovementioned subject matter seeking your kind intervention and necessary action.

That on dt. 22.6.17, I had submitted RTI Application to the PIO, office of Odisha Power Transmission Corporation Limited (OPTCL), Bhoi Nagar, Bhubaneswar seeking information about details of        Tender ( No. Sr. G.M.-CPC-ICB-ERS-24/2015)  for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network for OPTCL. On 11.7.17, the PIO supplied some information. While analysing the information,  I  unearthed  huge irregularities  and corruption  in  the selection  procedure  for selecting  final bidder  M/s High Tech Systems & Services, Kolkata.  The OPTCL  has ignored, bypassed  its own terms and conditions of tender  and shown favouritism  to the said Company  for  awarding  the bid.  These are as follows.

1.    In August, 2015,  OPTCL  had released  advertisement inviting  International Competitive bidding in e-tendering mode only from reputed manufacturer, type testing, inspection, loading at factory, transportation to & unloading at site / stores  including  guaranteed  obligation  for supply of lightweight  aluminium, modular type emergency  restoration system (ERS) suitable for  400kv transmission line Network  of OPTCL with an estimated  cost of  Rs. 130 Million.  Following   due tender procedure, OPTCL finally awarded this work to M/s High Tech Systems & Services, Kolkatta, an authorised channel partner of M/s Tower Solutions Inc., Canada,  a Manufacturing Company (?).

2.    Under the Head “ Qualifying Requirements  of Bidders: Technical qualification”, It is mentioned in point 4.1.(iii) that   the bidder  should have  already supplied  400KV ERS ( Emergency Restoration Services) tower  for which  he submits  his offer  not less  than  the quantity  tendered ( 12 nos. new design ERS towers suitable for  400kv transmission line Network) as per specification  in last five years.   On RTI query, the PIO has not supplied copy of any purchasing order rather two performance report from    NTE-Transmissora de energia, Brazil and CESC Limited.  The performance report cannot justify purchasing Order. If there is performance report, then why the Company has not produced PO.  It is assumed that the Performance Report is false and manipulated. So it is proved that this Manufacturing Company Tower Solutions Inc, Canada   has not got any purchasing Order from any agency for procurement of 12 nos. new design ERS towers suitable for 400kv transmission line Network even not from India.   ( Copy of Performance Report of NTE-Transmissora de energia, Brazil  and CESC Limited is attached  as annexture-1)

3.    M/s Hi-tech System and Services Limited is not OEM (Original Equipment Manufacturer). It is the channel partner of Tower Solution Inc, Canada. It  is astonishing  that  in its Purchase Order ( PO)  which has been awarded  to M/s Hi-tech System and Services Ltd. , OPTCL has not mentioned  a single word  about the OEM. This type of P.O. is likely to cheat technical people issued by OPTCL. ( Copy of purchasing Order attached as Annexture-2).

4.    As per Tender Advertisement, the bidder should be  a manufacturer or their authorised  channel partner  of 400KV  ERS tower for which he submits the offer. From the document produced  by the final bidder, it  was found that the major items like  Foundation Base plate, Foundation Base  Artiulation,  Tower sections ( TSMast), Universal attachment , Gin Pole etc.  are manufactured  and type tested  at  Laser  AMP, Granby, QC, Canada, whereas  the supplier is  “ Tower Solutions  Inc. , 7030 Woodbine Ave, Suite  500 , Markhan , ON L3R6G2, Canada. While browsing the website, it  was also found  that Tower Solution , Canada  is  a Company having ISO 9001 certificate  for sales, engineering  and supply  of emergency tower for the high voltage  transmission industry, training of  electrical utility  companies  in using  temporary tower  and consulting to  electricity utility  companies.    It has also specialisation in transmission Modular Restoration Towers used for emergency restoration of high voltage transmission lines. It is a supplying-partner of Manufacturing Company Laser AMP, Canada. (Copy of document is attached as Anexture-3).

5.    Under the Head “ Qualifying Requirements  of Bidders: Technical qualification”(4.1.v), it is mentioned that the offered equipment  should be  type-tested  at  Govt. approved  laboratory /CPRI/ NABL accredited  laboratory in case bidder(s) manufacturing  facilities  in India.  In case bidder(s) manufacturing  base is outside  India, the offered equipment  should be type-tested  from KEMA, Holland/ EDF, France/Hydra-Quebec, Canada/CESI, Itay/IPH, Germany/KERI,Korea, XAHARI, China/ CRIEPI, Japan and in other cases,  it shall be type-tested  from an internationally Accredited  Laboratory  owed by  the Government of those Countries  of Origin.   But astonishingly,  the  Company  has not produced any such document   from  accredited or Govt. approved laboratory of Canada in support  of  its  equipment type-tested.  But it has submitted a manipulated document from IEEE Testing done  at Laser AMP Inc., a manufacturing Company. Now the question is raised  why Tower Solutions Inc.  has not type-tested  its equipment  in CESI of Canada.  (Copy of document is attached as Anexture-4).

So,  the officials of OPTCL including Hemant Sharma, Managing Director  has flouted all tender norms  and  manipulated  selection procedure by accepting  objectionable  documents provided  by the Company  and shown favouritism  to award  the work  i.e., supply  of equipments  for ERS (Emergency Restoration Service) suitable for 400Kv Transmission line Network. We are  also astonished that how the post of Director, Operation and Director, Project are lying vacant since last five year. Due to vacancy of these posts, Sri Hemant Sharma has become absolute authority  in the matter of decision making process in OPTCL. As a result,  He takes  all decisions on his own  wish flouting all tender norms  and awarding   the said work to  M/s High Tech Systems & Services Since last seven years, he has also been continuing  as Managing Director, OPTCL  without any transfer. 

 We presume that this is clear-cut corruption and undue favour granted to this   company through a big kickback. It has also come to our notice that very sub-standard and less quantity of materials  has been supplied to OPTCL.  Though RTI Application has been filed  for inspection of materials, the PIO, OPTCL does not allow for inspection.

We request you to enquire into the matter  and stop  payment  to this Company and take  legal action against the officials responsible  for it.

Thanking you
Yours sincerely


Pradip Pradhan
Plot No-D-27, Maitree Vihar
Post-Rail Vihar, vanivihar,
Bhubaneswar-751023
M-9937843482

Sanjukta Panigrahi

Sachikant Pradhan


Srikant Pakal 

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