IRCON: Is a particular firm being favored by putting special conditions in the tender?

Preparation to defame the Indian Public Exchequer by limiting competition!

Government of India is funding ₹70.63 crore for signaling upgradation work of a section of Shri Lanka Railways

The General Manager, Mr #IPSharma, #IRCON International Limited, No. 12, Kinross Avenue, Colombo-04, Shri Lanka, floated a tender no. IRCON/S&T/1800021/9902 Dated: 21.08.2023 for the work of “Design, Supply, Installation, Testing and Commissioning of Electronic Interlocking/Relay Based Signalling System from Maho to Anuradhapura section of Shri Lanka Railway” at a total cost of $85,01,177 which is equivalent to ₹70.63 crore. The work is under IRCON’s Director/ Works Mr Parag Verma.

Though many contractors’ have complained but #Railwhispers could collect complaint of one eligible bidder M/s #GSatishEnterprises and this complaint is completely exposing and tarnishing the image of not only of #IRCON but also General Manager of IRCON International Ltd Mr I. P. Sharma.

#Railwhispers have enquired the matter through our reliable sources and noticed that the Essential Qualifying Criteria of the above #Tender has been modified quietly without any approval of Director/Works to suit only one bidder M/s Kiran Infra Engineers Limited, Jaipur.

Sources say GM/IRCON Mr I. P. Sharma is also a silent partner in the above firm and has favoured them in past many contracts. M/s Kiran Infra Engineers has worked with IRCON’s Mr I. P. Sharma in previous tender of Shri Lanka and also in Kiul-Gaya section of East Central Railway. It is alleged that in both the tender Mr Sharma has made huge money by undue favour to #Contractor M/s Kiran Infra Engineers, Jaipur. In Kiul-Gaya Electronic Interlocking work contract was closed after receiving full supply and without complete execution of work. Further, IRCON is getting the leftover work of M/s Kiran Infra in above section done through other contractors at much higher rates, causing huge loss of public exchequer. Such favour to #Contractor is the matter of serious investigation.

In present tender followings manipulations are noted-

1. As per Tender Notice this tender is to go through the process of “National Competitive Bidding”. That means only “National Indian bidders” are permitted to bid. Placement of registration of firm/company is mentioned Anywhere in India. Joint venture (#JV) for such big volume of tender is not Permitted. Further “Make In India” policy and product is mentioned “NOT APPLICABLE”. This is despite of the fact that this project is being funded by Indian Government.
2. In the Essential qualifying criteria, Similar work means-

I. Supply, Installation, Testing & Commissioning of Electronic Interlocking/Relay Based Signalling System “IN THE FOREIGN COUNTRY”.

II. Supply, Installation, Testing & Commissioning of OFC based Railway Telecommunication System “IN THE FOREIGN COUNTRY”.

3. The word “IN THE FOREIGN COUNTRY” has been quietly added for the 1st time in such #tenders of #IRCON to favour only one party i.e. M/s Kiran Infra Engineers since they have previously executed such work in #SHRILANKA.
4. In the similar tenders of #Nepal and #Bangladesh “NO” such #condition was imposed that the #bidder should have executed the work in the foreign country.

III. One such example is the tender no. IRCON/2050/BGL/JBB/S&T/TENDER/06 dated 18.11.2016 of #NEPAL where in Essential qualifying criteria, meaning of similar work was Defined-Works are considered similar if executed work involves Design, Supply, Installation, Testing and Commissioning of complete Indoor & Outdoor (SSI/EI/RRI/PI) S&T work. Nowhere it is mentioned that #bidder should have executed the work “IN THE FOREIGN COUNTRY”.

Therefore, such restrictions in the “Similar work means – Design, Supply, Installation, Testing & Commissioning of Electronic Interlocking/Relay based Railway Signalling System in the foreign country” will eliminate #competition and cause huge loss to Public exchequer.

JV is to be permitted as per Indian Railway’s General Conditions of Contracts (#GCC).

Since the contract is being executed with funding extended by Indian Government to #SriLanka Government, tender conditions should be such that all the S&T #tenderers, #bidders or #firms who have experience of similar nature of work in India, should qualify to maintain healthy business competition.

#IRCON International Ltd. must promote Indian contractors instead essential eligibility criteria is designed to promote only one bidder which is purely against the policy of Central Vigilance Commission (#CVC) and Competition Commission of India (#CCI) guidelines.

What say Mr I. P. Sharma, GM/IRCON-

In relation to all the above facts, when #Railwhispers contacted GM/IRCON Mr I. P. Sharma and asked why this special condition – “in the foreign country” – was kept in the said tender, whereas this tender is fully funded by the Government of India, and only Indian firms can participate? On this he said that since the project has to be completed in 12 months, after taking the tender, most of the firms waste 6-7 months in completing the formalities like visa, passport etc. of their workers. On this, when he was told that this is a headache for the firms taking the tender, but this will happen, how can he put such a special condition after assuming in advance, whereas IRCON has never put any such condition in the tenders of Nepal and Bangladesh?

On this, Mr Sharma said that the tenders of Nepal and Bangladesh were not so time bound and important. You may be right in saying this, but it is being said, and in this context, a firm from Secunderabad has even complained in writing that due to this “special condition” only one Indian firm is becoming eligible in this tender, and there is also an allegation against you that you have added this special condition only to favor this firm – Kiran Infra Engineers Jaipur – that too later, what do you have to say about this?

Answering this question, Shri Sharma said that anyone can say anything, but there is no such thing as favoring anyone, but yes, a firm has written a letter and this matter is in the cognisance of CMD/IRCON and Railway Board, now they will take appropriate decision on this! However, this special condition of yours will reduce the competition, which is against the guidelines of CVC and CCI? On this he said that yes, there will be less competition, but still 4-5 firms will definitely come.

But you have given favor to Jaipur based firm earlier also – in the tender of Kiul-Gaya section of East Central Railway – in which the tender was closed without completing the work? He didn’t say much on this! When he was told that there is also an allegation against you that you have a silent partnership in the said firm? So he laughingly said that there is no substance in this allegation, it is baseless!

Overall, Mr. Sharma’s answers are not satisfactory. Therefore, the intention behind the said “special condition” inserted in the above tender is also not clear! The conclusion is that the said special condition should be removed so that more and more firms can get equal opportunity to participate in the said tender. On the one hand, this will ensure adherence to rules, guidelines and procedures, and on the other hand, there will be significant savings of public funds by getting fair rates through more competition.

Compiled by : Suresh Tripathi