DHBVN ignored lowest bids, paid extra by re-tendering: CAG

SIRSA: Rules were flouted and financial irregularities were committed in the allotment of works for the construction of power substations in Sirsa, Hisar and some other districts by the Dakshin Haryana Bijli Vitran Nigam (DHBVN), thereby causing extra expenditure of crores to the company.

Sushil Manav

Tribune News Service

Sirsa, April 25

Rules were flouted and financial irregularities were committed in the allotment of works for the construction of power substations in Sirsa, Hisar and some other districts by the Dakshin Haryana Bijli Vitran Nigam (DHBVN), thereby causing extra expenditure of crores to the company.

The decision of the High Powered Purchase Committee to re-tender by ignoring the lowest rates resulted in extra expenditure of Rs 6.36 crore to the DHBVN.

The latest report of the Comptroller and Auditor General (CAG) for Haryana has rapped the government for causing extra expenditure to the DHBVN by issuing re-tenders for construction of power substations at Sirsa, Bhiwani, Hisar, Gurgaon and Narnaul by ignoring lowest rates quoted in first tenders.

The report said the DHBVN invited five tender inquiries for the construction of 23 power substations of 33 kV on turnkey basis with an estimated cost of Rs 59.08 crore.

As many as 23 firms participated in the tenders.

M/s NKG Infrastructure Limited offered the lowest rates for 13 substations, while M/s Century Infrastructures Private Limited gave the lowest rates for the rest of the 10.

While the DHBVN issued work orders for two works, the company re-invited tenders for three other inquiries for the construction of 21 substations.

Eventually, the DHBVN issued work orders for 21 substations to M/s Sham Indus Solutions Private Limited, New Delhi, at Rs 54.85 crore, which eventually worked out to be Rs 33.53 crore for the 13 works that were denied to the earlier lowest bidder — M/s NKG Infrastructure Limited.

The CAG report said during the exit conference in September 2013, the Additional Chief Secretary, Power Department, said the company had anticipated lower rates during re-tendering. It further said the above points were referred to the government in May 2013, but no reply had been received till December 2014.