Railway Signalling Scam: How has the railway justified the price difference of Rs. 1100 crores?
How Railways have never assessed such super normal obnoxious profits through Works and EPC purchase to loot Indian Railways charged by contractors in collusion with Cartel involved with policy changes from Stores purchase to Works?
On 15th of August, 2022 our Hon’ble Prime Minister Narendra Modi from the Lalkila said, “Two big challenges we face today – ‘corruption & ‘Parivarvad’ or nepotism. Corruption hollowing the country like a termite, we’ve to fight it seriously”.
I HOPE, HON’BLE PRIME MINISTER REALISES BEFORE IT IS TOO LATE THAT THE TERMITE OF THE NATION IS SITTING IN THE OFFICES OF THE INDIAN RAILWAYS.
I whole heartedly congratulate the Minister for Railways Ashwini Vaishnaw for a very efficient step to save millions of Rupees by intruding Policy No. 2022/RS(G)/779/12 (E3400699) dt. 30.08.22 deciding that all Engineering Material procurement hitherto being done by Engineering Department shall be done henceforth by Stores Department.
But I fail to understand how deep rooted corrupted officers are, and how the Chairman & CEO, Railway Board is failing to act upon all available data indicating the deep nexus between Signalling contractors and top Signalling officers of Indian Railways?
FACTS AND MORE DATA EXPOSING THE CONTINUING RAILWAY SIGNALLING SCAM WHICH IS BEING OVERLOOKED BY THE RAILWAY BOARD – DELIBERATELY OR ELSE???
Daily losses in Crores of Rupees due to faulty Policy of buying Signalling material from Works instead of Stores.
RAILWAY BOARD ISSUED NEW POLICY VIDE LETTER NO. 2020/SIG/17/PROCUREMENT DT. 27.07.2022 FOR PROCURING S&T MATERIAL INCLUDING MULTI SECTION DIGITAL AXLE COUNTER (AXLE COUNTER) THROUGH WORKS CONTRACT ALSO EPC.
Some more recent facts:
1. Northern Railway Tender No. 08215268, Closing Date/Time: 06.06.2022 11:00
i) Floated on 11.03.2022
ii) Pre-Bid conference held on 23.03.2022
iii) 20 times tender deferred and corrigendum issued
iv) Finally tender opened on 06.06.22
v) Tender committee opened Technical Bid on 06.06.22 (Due to extreme urgency)
vi) Tender committee opened Financial Bid on 04.08.22
vii) Tender committee conducted Reverse Auction (RA) on 08.08.22
viii) Tender committee finally discharged tender on 12.08.22
Facts:
a) Why was 20 times corrigendum to tender issued?
b) After all changes and opening of technical bid, financial bid, Reverse Auction, why was tender discharged?
c) Rates after Stores Reverse Auction dropped to Rs. 3,64,000 per DP compared to Rs. 7,50,000 being purchased by Works and EPC. Railway Board has in collusion with Cartel of Signalling contractors changed policy of procurement of Signalling items from Stores to Works for fast track progress. If Stores tenders are not finalised after 20 corrigendum and RA etc then whose fault is it? Meaning ‘fast track’ by Stores can take place in case of Engineering items only and not for Signalling items? This proves the corruption in Signalling officers to ensure Stores tenders are not finalised and they can award Signalling MSDAC tenders at double the price through Works/EPC contract. Loss being 1500 crores!
2. NORTHEAST FRONTIER RAILWAY – 1st Tender: Events-
i) NF Railway Stores floats Tender no. 50215128 on dt. 31.01.2022
ii) Price received from L1 – RDSO approved source: Rs. 3,15,000/- per DP
iii) STATUS: Stores tender discharged inspite of rates received half than last purchase rate through Works.
3. NOW, AFTER DISCHARGING EARLIER STORES TENDER WITH RATE RECEIVED OF Rs. 3,15,999/- NF RAILWAY FLOATS TWO TYPES OF TENDERS FOR 1776 NUMBERS:
i) Stores tender for 1226 DP (Detection Points) vide tender number 04225085 closing date 04.08.2022. (PAGE-3).
ii) Balance 550 for DP (Detection Points) as EPC Tender No. N/2/HQ/EPC/ABS 2022-23 closing date 12.05.2022 for provision of Automatic Block Signalling in Aluabari Road (AUB) – New Jalpaiguri (NJP) in NF Railway.
4. Rates of MSDAC:
i) Recent rates of MSDAC through stores purchase after RA for NWR Tender No. 50215282A dt. 25.07.2022 as follows:
i) Basic Rate for supply calculation: L1 Offer Company Name – OEM CEL Ghaziabad:
Basic Rate: Rs. 60,80,000 for 19 DP. So Basic rate each DP = 6080000├╖19 = Rs. 3,20,000 per DP.
ii) Recent rates of MSDAC through stores purchase after RA for NR Tender No. 08215268 dt. 06.06.1022 as follows:
a) Basic Rate for supply calculation : L1 Offer Company Name – OEM CEL Ghaziabad: Contractor: Solar LED.
b) Basic Rate: Rs. 3640000 for 10 DP. So Basic rate each DP = 3640000├╖10 = Rs. 3,64,000 per DP. (Page-6)
c) Installation and commission cost: Rs. 20000 per DP. (Page-6)
d) Total Supply + Installation cost for OEM : Rs. 320000 + 20000 = Rs. 340000/-
iii) Recent rates of MSDAC through EPC Tender No. N/2/HQ/EPC/ABS/2022-23 closing date 12.05.2022 for provision of Automatic Block Signaling in Aluabari Road (AUB)-New Jalpaiguri (NJP) in NF Railway awarded Letter of Acceptance No. NFR HQ-S AND T/N/2/HQ/EPC/ABS/2022-23 / 00888690058404 Dated: 20.07.2022 to M/s SS RAIL WORKS PRIVATE LIMITED as follows:
a) Tender finalised at Rs. 83,17,86,878.25 i.e. = 14.5% higher than ADVT. Value
b) MSDAC Qty: Estimate final qty 1776 – Stores purchase qty 1226 = 550 DP
c) MSDAC Rate as per Estimate – Rs. 6,24,173/-
d) MSDAC awarded as per LoA: Rs. 624173 x 114.5% = Rs. 7,14,678/- (Rupees Seven lakhs fourteen thousand six hundred seventy eight).
5. Extra price awarded by NFR through works EPC than Stores purchase:
a) EPC price Rs. 714678 тАУ Stores Price Rs. 340000 = Rs. 374678/-
b) Meaning a loss of Rs. 374678 x 550 = Rs. 20,60,72,900 (Rupees Twenty crores sixty lakhs seventy two thousand nine hundred only).
c) Annual requirement = 30000 DP
d) Annual calculated and proven loss = Rs. 374678 x 30000 = Rs. 1,124,03,40,000/- (Rupees One thousand one hundred twenty four crores three lakhs and forty thousand ONLY)
Why was EPC Tender of MSDAC finalised as such hurry and at such high price causing such exorbitant losses in multi crores before obtaining the rates derived from Stores tenders to correct the estimates based on real real Stores price?
Why was the price received on Rs. 3,15,000/- not considered while making estimation to EPC purchase of MSDAC? All across the country Stores tenders after Financial bid and RA showed price of Rs. 3,10,000/-
EPC Tender finalised value was: Rs. 83,17,86,878.25.
MSDAC Price in above finalised EPC tender: Rs. 7,14,678.
If Stores price of NFR MSDAC tender dt. 31.01.22 intentionally would have considered for estimation then MSDAC price would have been Rs. 3,15,000 i.e. 714678-315000=399678 x 550 = Rs. 22 crores would have been saved in this EPC contract and EPC tender would have been finalised at Rs. 61 crore.
Of course, the Railway Board has been blinded with corruption. When will the Hon’ble PM stop this big-bang corruption of Indian Railways?
SAME RAILWAY PAYING 7.5 LAKHS THOUGH EPC/WORKS TENDER AND 3.2 LAKHS THROUGH STORES PURCHASE IN THE NAME OF FAST TRACK IN PERIOD DIFFERENCE OF TWO MONTHS. EPC TENDER FINALISED AND STORES LEFT HANGING IN THE AIR.
Now after awarding MSDAC through EPC, it is known to us that N.F. Railway signalling department is again discharging Stores tender for 1226 DP (Detection Points) vide tender no. 04225085 closing date 04.08.2022 so that it is not exposed and EPC rates are not challenged.
6. One more fact and data:
Contractor quotes in Works contract without Installation as MSDAC Basic price – Rs. 7,33,210/- (No value addition to the supply part).
Same contractor quotes in stores Basic Price – Rs. 3,70,000/- taking authorization from OEM.
How is the price difference of Rs. 365000/- per DP i.e. 365000 x 30000 = Rs. 1,100,00,00,000 (Rupees Eleven hundred crores) justified? How Railways have never assessed such super normal obnoxious profits through works and EPC purchase to loot Indian Railway charged by contractors in collusion with Railway officers and officers involved with policy changes from stores purchase to works?
How does Railway justify the extra unrequired quantities of MSDAC purchased through variation when there is no requirement?
Data reflects that Stores tenders of 9945 digital axle counters were floated however Railways have awarded only 331 numbers in span of two years due to Signalling officers and influence of some senior Railway Board officials.
How does the Hon’ble Chairman Railway Board justify loss of 1500 crores in name of ‘fast track’ when stores tender not finalised and EPC/Works tenders finalised in a jiffy in exchange of huge illegal gratification?
Railways have floated further tenders of MSDAC only through works EPC mode not composite Signalling but MSDAC so that contractors can charge three times the price and bribe Indian Railway officials and loot the country!
ALL ABOVE TENDERS HAVE MSDAC ESTIMATED AT RS. 7 LAKHS COMPARED TO STORES PRICE OF Rs. 3 LAKHS. RAILWAY BOARD VIGILANCE, CVC, CBI, ED, SHOULD INVESTIGATE AND STOP SUCH CORRUPTION.
This is a very serious scam of thousands of crores. Minister for Railways is requested to intervene and punish all the Signalling officials who are purchasing/have purchased a product of 3 lakhs at 8 lakhs causing annual loss of about 1500 crores.
Loopholes in the law create opportunities for such Signalling contractors who are fraudsters to commit crimes. While amending and developing laws as per the changes in the society is not the only solution, scams highlight the frequency of agencies not taking responsibilities seriously and abusing powers arbitrarily.
Rectifying these actions is rather tough but never impossible when there is strong supervision that follows all rules and regulations according to the applicable of law. Where there is a responsibility, there is accountability and that would ensure all measures are being taken to avoid any such irregularities.
IT IS RELEVANT TO MENTION THAT THIS RAILWAY SIGNALLING SCAM EXPOSED WILL BE RANKED AMONGST TOP-20 SCAMS OF INDIA.
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