AXLE COUNTER FRAUD, SCAM AND LOOT IN RAILWAYS CONTINE

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Works/EPC contracts ensure that MSDAC are purchased through double the prices with the option to increase the quantity by 100%

Daily losses in crores due to faulty policy of buying signalling material from Works instead of Stores

Purchase of Signalling items MSDAC and Electronic Interlocking through Stores will save minimum Rs. 4,000 crores of public money annually

Railways can purchase Signalling items by Works or Stores but the rules and rates should be the same

India has without any doubt a successful G20 meeting. Many have commented that the Supreme role India played under the leadership of our dynamic Hon’ble Prime Minister Shri Narendra Modi in Bali ‘signals’ its rise as a new power.

Nevertheless, there is also a need for caution. 18th Lok Sabha elections are very near having entered the election year.

#Railwhispers has been continuously exposing the Railway signalling scam to the magnitude of thousand of crores without any action. We request Hon’ble Minister for Railways to kindly get this examined thoroughly before it is too late and the dream, vision and efforts of being a corruption free country is not over.

We cite two examples of Signalling Item MSDAC (Multi Section Digital Axle Counter) being purchased from the same contractor, one purchasing authority being Works and the other being Stores:

The contractor in 2020 quotes and is awarded MSDAC as high a rate as Rs. 6,51,504/-. Now, in 2022, SAME contractor has quoted Rs. 2,91,000/- for same item MSDAC with same item description without any value addition in STORES TENDER No. 08215268A dt. 25.10.2022 of NORTHERN RAILWAY.

The above LoA has a price of MSDAC as Rs. 4,70,400/- and is finalised at 38.5% higher which is Rs. 6,51,504/-. Installation cost separately charged by the contractor.

The above document clearly shows that the contractors Pricing as follows:

• MSDAC Price Rs. 2,91,000/- in NR Stores tender

• MSDAC Indoor installation price: Rs. 20000/10 = Rs. 2,000 per MSDAC

• MSDAC Outdoor installation price: Rs. 16,000 per MSDAC

• In works, MSDAC price of same contractor as proven above = Rs. 651504 + Installation cost

Anyone can imagine the windfall profits and margins charged by the contractors/suppliers.

The Purchase Order issued to the OEM by these contractors will reveal the Price is much lower than Rs. 2,91,000/- also per DP.

In fact, the Purchase order description of Railways to Contractor and then Contractor to OEM is exactly the same.

It is to be investigated that what value addition does the contractor do to this MSDAC that the rate is increased from Rs. 2,40,000/- to Rs. 7,41,000/-.

Signalling officials are very well aware of this scam and still opting to go for Works tender and thus again giving the contractors a chance to increase further prices.

Through Stores department, it is ensured that price is reduced as Reverse Auction takes place and the Purchase Orders are issued as per readiness of site and requirement.

Works/EPC contract ensure that MSDAC are purchased through double the prices with the option to increase the quantity by 100%.

Also, contractors supply the MSDAC just after receiving LoA even when the cables are not laid.

Daily losses in crores due to faulty policy of buying signalling material from Works instead of Stores:

LOSS OF 200 CRORES IN 5000 NUMBERS WORKS PURCHASE

TOTAL LOSS FOR 30000 NOS. = 1200 CRORES.

THESE TENDERS ESTIMATE RAILWAY PRICES SHOULD BE IMMEDIATELY INVESTIGATED AND TENDERS DROPPED.

We re-iterate the very important facts of scam: Eastern Railway Vigilance report proves Electronic Interlocking of Kyosan purchased for 80 lakh and sold for 5.5 crores by the contractors.

500 Electronic Interlockings purchased by the 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 scheduled 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 crores).
      
Purchase of Signalling Items MSDAC and Electronic Interlocking through Stores 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.
    
WE REQUEST THE HON’BLE MINISTER FOR RAILWAYS AND CRB SIR TO STOP FINALISATION OF ALL SIGNALLING WORKS/EPC TENDER WHERE MSDAC AND ELECTRIC INTERLOCKING SUPPLY IS INCLUDED TILL INVESTIGATION REPORT BY ANY NEUTRAL AGENCY OR OFFICERS OF STORES AND SIGNALLING IS RECEIVED AND EXAMINED BY YOUR KIND SELF.

#MSDAC #AxleCounter #Signalling #RailwayBoard #IndianRailways #ElectronicInterlocking #Fraud #Scam #Loot #Stores #Works