PURCHASE OF MSDAC: SCAM HAS BEEN FURTHER EXPOSED!
The policy which was reversed in 2010 because of a huge difference in the purchase of the same item. Why this reversal, when the logic behind this is incomprehensible!
Railway scams/frauds in our country exposed involving money which amounts to thousands of crores. Measures to tackle corruption and curb the growing menace of black money has dominated the national discourse over the past years. Various policies and legislations, including the implementation of Goods & Services Tax, and the demonetisation of high-value currencies were some of the steps taken by the Central Government in a bid to make India corruption-free.
With efforts and under guidance of the Hon’ble Prime Minister of India, Narendra Modi, India’s rank improved one place to 85 among 180 countries in a corruption perception index (CPI) of 2021, according to a new report by Transparency International.
“Today, confidence has been generated in the telecom sector”, Ashwini Vaishnaw, Minister for Railways, Communications and Electronics & Information Technology, Govt of India said, adding, “the telecom sector is seen as a sunrise industry, and much of the legacy issues are behind us now”.
But the sun has set in Indian railways and darkness spread due to its Signalling department. In the name of expediting projects and putting them on ‘fast track mode’, senior officials of Signalling department in collusion with cartel of Signalling contractors.
And, as per reliable sources, one MD of International manufacturer of Digital Axle Counter based in Southern part of India (who takes huge bribes from contractors) have got policy of procurement of Digital Axle Counters reverted to be purchased through works contract instead of Stores just so that can continue to loot thousands of crores of public money and make themselves more and more rich.
Read: “Indian Railway: Contractors making Raining Profits by twisting the Policy in a cartelized manner!”
Purchase of Axle Counter through Works tenders comparing price difference with procurement through Stores, increase the burden of the public exchequer by a Rs. 1500 Crores annually considering the annual demand of 30,000 Axle Counter in Indian Railways as the price of the same through Works is approximate 8 lakhs compared to Stores purchase of approximate 3.2 lakhs.
Now, the Railway Board issued new policy vide letter no. 2020/SIG/17/Procurment Dtd. 27.07.2022 for procuring S&T material Multi-Section Digital Axle Counter (MSDAC) through Works contracts also.
Data reflects that Stores tenders of 9945 Digital Axle Counters were floated however Railways have awarded only 331 numbers in span of two years. This is because the Signalling officers at Zonal Railways delayed the finalization process being Tender Committee (TC) Members.
If orders were issued OEM would have directly and on time supplied the Axle Counters. The policy has left the decision in the hands of Principal Signal & Telecom Engineers (PCSTEs) whonow in collusion with contractors will misuse the policy to purchase only through Works and at a very exorbitant rates so that contractors can earn raining profits and provide illegal gratification to concerned officials.
How can Railway justify that purchase through Works will make supply fast track when intentionally they have not issued only 331 out of 9945 quantity order through Stores in two years period and will they justify loss of more than Rs. 1500 crores due to purchase by Works?
SCAM HAS BEEN FURTHER EXPOSED:
It has been learnt from reliable sources that a complaint was filed almost a year ago with substantial data and a Vigilance investigation was carried out by Eastern Railway Vigilance organisation. It is also learnt that the said investigation’s reports/findings were not submitted to the Railway Board.
Following are the facts-
The report is being delayed and data destroyed against illegal gratification from particular contractor so that the corrupt officials and contractors continue to earn huge profits.
1. Eastern Railway’s Contract No. CSTE/CON/385 Dt. 20.07.2017 of Howrah Division 3rd line Bandel to Boinchi
MSDAC purchased at Rs. 6 lakhs and 29 Detection Points (DP) out of which 13 DP still lying as wastage since 2019.
Extra unused/not required material Value loss: Rs. 78 Lakhs
2. ERтАЩs Contract No. CSTE/CON/398 Dt. 06.06.2018
MSDAC purchased at at Rs. 6 lakhs and 180 Detection Points (DP) as per original contract and then 330 DP as per variations out of which 82 DP purchased through last variation still lying as wastage since 2021.
Extra unused/not required material Value loss: Rs. 2.48 crores.
Why was material purchased through 3rd variation of 82 DP if it was never going to be used?
3. ERтАЩs Contract No. CSTE/CON/06/HWH/2019 Dt. 20.02.2020
MSDAC purchased at at Rs. 6 lakhs and 120 Detection Points (DP) as per original contract and then 35 DP as per variations out of which 35 DP purchased through last variation still lying as wastage since 2021.
Extra unused/not required material Value loss: Rs. 1.05 crores.
Why was material purchased through variation of 35 DP if it was never going to be used?
4. ERтАЩs Contract No. CSTE/CON/413 Dt. 31.01.2019 (Sealdah Division)
MSDAC purchased at at Rs. 6 lakhs and 128 Detection Points (DP) as per original contract and then 180 DP as per variations out of which Total 180 DP purchased through original contract and variation still lying as wastage in Railway depot since 2019.
Extra unused/not required material Value loss: Rs. 8.04 crores.
Why was material EVEN purchased if it was never going to be used?
The above details proves the huge scam involved in purchasing through Works where Signalling officer in consideration of huge bribes awards positive variation in quantities which are actually not required and lie idle in Railway sheds and cause losses to the public exchequer.
Why are the extra purchased quantities through variation excuse not retendered? If this would have been purchased through Stores department there would be no wastage as material is procured against vetted demand and as per readiness of site and there is not an option to purchase more than what is required.
It is clear that Signalling officers have decided to loot Indian Railways with some contractors by manipulating the system and getting this corrupt policy of procurement of Signalling material through Works and ensuring thus:
a) Purchase of Digital Axle Counters at double the price than through Stores procurement and causing loss of approximately Rs. 1350 crores annually.
b) Purchase through Works variation extra quantity which are actually not even required to complete the works and just so that the contractor can earn more and make our nation bleed more and more.
THE LOOT OF PUBLIC EXCHEQUER CONTINUES FURTHER
In 2010, in East Central Railway (ECR), while Stores department purchased Axle Counter @Rs 3 lakhs, construction department purchased it almost at 3x @Rs 8.5 lakhs. Both purchases were made from the same RDSO approved sources. Same was the case of UFSBI.
While Stores Department purchased @Rs 8.5 lakhs, construction departments across all Zonal Railways were purchasing @Rs 18-20 lakhs from the same single RDSO approved source M/s Deltron control system.
Keeping in view of such a huge difference in price, the then GM/ECR Mr Girish Bhatnagar ordered that S&T items like Axle Counter, IPS, UFSBI etc. will be purchased through supply contracts by the Stores department and since then that policy is continued, which has now been reversed.
The meaning between the lines can be easily understood that the loot of public exchequer will continue! The surprise is the Minister for Railways and the Chairman & CEO Railway Board could not understand this meaning?
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