NEW DELHI, Jan 12: Facing heat from opposition, Road Transport Ministry today said all due processes in line with the Cabinet approval were followed in award of strategic Rs 10,050 crore Zojila pass tunnel contract to IRB Infrastructure Developers Ltd.
The statement comes a day after Congress demanded sacking of Union Minister Nitin Gadkari, alleging that the award was a “clear case of corruption at the highest level”.
“Ministry of Road Transport & Highways follows due procedure while maintaining complete transparency in the award of any contracts. In the instant case also the contract was awarded after due diligence after the bid was found technically responsive. Financial bid was opened and the quoted Semi Annuity amount found in line with the approval of CCEA for award of the work,” an official statement said.
It said the award was granted to IRB Infrastructure only after initial three bids had to be cancelled due to receipt of only “single bid”, while all norms right from detailed project report were adhered to for the strategic project in Jammu & Kashmir to provide all weather connectivity to Leh-Ladakh.
“E-Tendering process was adopted for award of Zojila Tunnel contract with the mode of BOT and concession period of 22 years including 7 years construction period,” it added.
It said bids for the tunnel were invited first in April 2013 but had to be cancelled at technical stage only due to “single tender”, and fresh tenders were floated but had to be cancelled in the financial stage due to single tender again.
“Based on the experience, the Government changed the system of calling bid from from two stage system to single stage and a fresh bid adopting single stage (two cover) system for wider participation by the Agencies was called,” it said.
“Considering the geographical & strategic location of the project, a wider publication through newspapers and through Ministry of External Affairs to foreign countries, Indian Road Congress, International Association of Bridge & Structural Engineers, Ministry of Railways was adopted,” it said.
However, the statement added that despite sufficient time of over 90 days from July 30 to November 2, 2015 only one bidder participated which had to be cancelled again as per the rule that single tender received in “first call shall be cancelled without opening the bid and the tender shall be re-invited”.
“Subsequently, tender was re-invited giving the last date for submission of the bid on December 10, 2015. In response only single bid was received from IRB Infrastructure Developers Ltd. The bid was opened and evaluated. Found technically responsive and its financial bid was opened and found the quoted Semi Annuity amount in line with the approval of CCEA for award of the work,” it said.
Congress General Secretary Digvijay Singh yesterday alleged that Gadkari, Minister of Road Transport and Highways, violated the CVC guidelines while awarding the contract.
Gadkari has rubbished the charges of corruption, saying that Singh’s allegations were “completely false” as the ministry followed a transparent e-tender system.
The ministry said the DPR for Zojila tunnel was prepared in 2012-13 and the project was approved by CCEA on October 10, 2013 with an estimated cost of Rs 9,090 crore on BOT (Annuity) mode.
“The National Security Council meeting was held on April 6, 2010 under Chairmanship of Prime Minister on “Border Infrastructure” development. In the light of NSC meeting, an Empowered Committee on Border Infrastructure has also been constituted under Chairmanship of Cabinet Secretary…To monitor the Border Infrastructures projects i/c Srinagar -Kargil-Leh Section,” the statement said.
Zojila pass, situated at an altitude of 11,578 feet on Srinagar-Kargil-Leh National Highway, remains closed during winters due to heavy snowfall and avalanches, cutting the Leh-Ladakh region from Kashmir and the tunnel once constructed will be the longest tunnel in Southeast Asia.
It is the biggest national highway project awarded in India in terms of project cost with a tunnel length spanning 14.08 km and costing of Rs 10,050 crore.
“We are confident that our work force will meet the challenges of the Himalayan terrain and build the tunnel well in time,” IRB Infrastructure Chairman and Managing Director Virendra Mhaiskar had said on the award in which IRB Infra will receive semi-annual annuity of Rs 981 crore.
Congress leader Singh has claimed that what was strange and unheard of was that the IRB was the sole bidder for the massive project and has said Government should have gone in for the Swiss challenge method.
Swiss challenge is a form of public procurement which requires a public authority which has received an unsolicited bid for a public project or services to be provided to Government, to publish the bid and invite third parties to match or exceed it.
Singh has alleged that Gadkari had business dealings with Mhaiskar, head of IRB, which had shares in the controversial Purti group floated by the Minister. He claimed Gadkari’s son Nikhil was director for some years in a subsidiary of IRB.
Gadkari, however has rubbished the charges saying, “No work in our department is awarded without e-tender. When the tender was floated earlier, only one party bid for it. This time also it was through e-tender. I do not favour anyone.”
Lashing out at Singh, Gadkari has said the charges were “completely false”.
“My son is not a director in that company… There is no shareholding. There is no connection with the company. Such false allegations have been levelled several times. I was given clean chit by the Income-tax department during his Government only. I don’t have even a single rupee business with that…,” Gadkari has said.
He has said “no favour” was given to any party.
The tunnel project is part of the Prime Minister Narendra Modi’s Rs 80,000-crore development package for Jammu and Kashmir, which he had announced in November.
The package included Rs 42,611 crore for development of roads and highways in the State. The highways packaged included “construction of Zojila tunnel” as per the PMO. (PTI)
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