PARDAFASH: CORRUPTION IN PURCHASE OF SIGNALLING ITEMS – BUSTED
If the issue of benefit of purchase through Stores vs Works investigated then Hon’ble Minister will realise purchase of MSDAC and Electronic Interlocking will save minimum Rs. 4,000 crores of public money annually
“Middlemen contractors charge abnormal extra margins and add to the cost of the MSDAC which ultimately increases the cost burden on the Railways affecting overall progress/estimates of new works!”
As per reliable sources, Eastern Railway Vigilance report has reached Railway Board and questionaire issued to concerned officers who have looted Railways – Exposed:
1. 100% variation was done in Signalling contracts to loot the Railways and help the corrupted signalling contractors.
2. This variation included MSDAC which is still lying in Signalling Stores/some missing and the purchase without requirement.
3. Electronic Interlocking of Kyosan purchased for Rs. 80 lakh and sold to the railway for Rs. 5.5 crores.
As per report, 500 Interlockings purchased by Indian Railways every year. There is no role of contractors except installation as OEM supplies 100% item.
Signalling contractor installation cost is paid separately to him as a schedule item. There is no added value. If this Electronic Interlocking would have been purchased through Stores directly and installation part kept in Works/EPC then the cost benefit to Railways is : Rs. 4.7 crores x 500 = Rs. 2,350 crores (Rupees Two Thousand Three Hundred Fifty Crore).
#Railwhispers whole heartedly congratulate the Hon’ble Minister for Railways for a very efficient step to save millions of Rupees by intruding policy no. 2022/RS (G)/779/12 (E3400699) dt. 30.08.2022 deciding that all Engineering Material procurement hitherto being done by Engineering Department shall be done henceforth by the Stores Department and hope that he saved further Rs. 4000 Crores by keeping MSDAC and ELECTRONIC INTERLOCKING in Stores to be purchased by the Stores Directorate.
Example – how the signalling contractors cartel have manipulated the tender conditions so that no genuine contractor/ OEM of MSDAC can ever qualify and they remain to get awarded at double the price of MSDAC compared to Stores.
Tender No.: SGW-272-252-T1-50A
Closing Date/Time: 09.12.2022
Type of Purchase: Works
Work description: Design, Supply, Installation, Testing & Commissioning of Auto signalling using Multi Section Digital Axle Counter for continuous track circuiting along with associated works at adjoining stations in Cheragram-Khana Section of Howrah Division of Eastern Railway.
MSDAC RAILWAY PRICE IN THE TENDER: Rs. 4,95,613.55/-, It is pertinent to mention that the established price of MSDAC through purchase by Stores department is Rs. 3,06,000/-.
In fact, the latest financial bid of MSDAC Stores tender no. 14225171 dt. 31.10.2022 opened by the same Eastern Railway has a price of Rs. 3,06,000 quoted by the lowest bidder who is an OEM and RDSO approved source.
THEN HOW THE ADVERTISED PRICE THROUGH WORKS IS Rs. 4,95,613/- when the schedule description of Works and Stores are exactly the same.
LOSS OF RAILWAY OF MORE THAN Rs. 1500 CRORES ANNUALLY JUST BECAUSE SO THAT THE CORRUPT SIGNALLING OFFICER CAN EARN MORE ILLEGAL GRATIFICATION.
Daily losses in crores due to faulty policy of buying signalling material from Works instead of Stores.
ELIGIBILITY CRITERIA: The following eligibility criteria defined in the EASTERN RAILWAY and other Zonal Railways’ Works tender clearly exhibits the corrupt collusion between some Signalling PCSTEs and the Signalling contractors.
Definition of Similar Work: The Similar nature of work required as qualifying criteria in this case of tender is, “Panel Interlocking or Route Relay Interlocking or Electronic Interlocking or IBH or Automatic Signalling or LC gate interlocking”.
The tender is for MSDAC purchase and the OEM/ Contractors having experience of supply and installation of MSDAC are not even allowed to quote and restricted to only those contractors having experience executing Electronic Interlocking Works???
The same EASTERN RAILWAY Stores Financial bid opened 11 days before the above works tender has a price of Rs. 3,06,000/- for the same item description.
FACTS FOR THE HON’BLE MINISTER FOR RAILWAYS:
1. Stores MSDAC price is Rs. 3,06,000/- compared to Works/ EPC average price of Rs. 7,00,000/-
2. There is no any value addition done in works by the contractor as compared to Stores.
3. The only difference is in Stores the installation is done by the bidder and in this case the RDSO approved OEM of MSDAC and in Works installation is done by the contractor.
4. In Stores, material is purchased through a rate contract and at the time so that material is supplied based on readiness of the site whereas in EPC/Works Contractors supply immediate and collect the 80% value of the order as payments when actual installation is done after more than two years.
5. Records available reflect that against Stores contract fasted and most economical installation is done by the OEMs as the control is in their hands.
https://www.kooapp.com/koo/RailSamachar/99a7b92f-6a93-4388-b955-dbdbe2489f6c
If the Hon’ble Minister for Railways will get this issue of benefit of purchase through Stores vs Works investigated by the CBI or a neutral team comprising both Stores and Signalling officers with an independent member and take their independent view then you will realise purchase of Signalling Items MSDAC and Electronic Interlocking will save minimum Rs. 4,000 crores of public money annually.
The Purchase benefit to Railways will be better visible when purchase of supply items of MSDAC and Electronic Interlocking is done centrally by Railway Board under Rate contract and leave the installation part in scope of EPC/ Works tender like Engineering items.
Some Zonal Railways have floated the following tenders of MSDAC through works EPC/ Works mode not through the Stores department so that contractors can charge three times the price and bribe Indian Railway officials and loot the country.
Fundamental right of the OEMs is compromised
The level playing field and fundamental right of the OEMs is compromised as purchasing MSDAC through works he is denied his right to quote directly to Railways. The very basis of obtaining RDSO approval is so that OEMs can quote and supply direct to Railways. The eligibility criteria through Works is orchestrated in such a way that OEMs can never participate direct in works tenders.
Result : Middlemen contractors charge abnormal extra margins and add to the cost of the MSDAC which ultimately increases the cost burden on the Railways affecting overall progress/estimates of new works.
This is a very serious and big scam of thousands of CRORES of PUBLIC MONEY. Hon’ble Minister for Railways is requested to look into the matter seriously and take necessary action as early as possible. To continue..
#MSDAC #AxleCounter #Signalling #RailwayBoard #IndianRailways #EasternRailway #Corruption #LossOfRailway #Tender