Norms followed, no violation in purchase of equipment: EB
The release claimed that manufacturers of transformers quoting the same price are not happening for the last two years but for over the last 10 years. It added that since all the companies that participated in the tenders were located locally and functioning for years, they would have known the prices to be quoted by the competitors.
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CHENNAI: Days after charges of corruption were raised in the awarding of contracts for procurement of transformers by Tangedco, the state government on Saturday denied it.
The state government rebutted the charges saying that multiple companies quoting the same price in bids for procurement of distribution of transformers were in practice since 2011. An official release issued by the DIPR said that the DMK government doesn’t in any situation allow irregularities to happen. “No irregularities happened in the Tangedco in the procurement of transformers,” it said.
The release claimed that manufacturers of transformers quoting the same price are not happening for the last two years but for over the last 10 years. It added that since all the companies that participated in the tenders were located locally and functioning for years, they would have known the prices to be quoted by the competitors.
“All the bidding prices were received only online. Even if more than one company submit the same price, as per section 10 (5) of the Tamil Nadu Tender Transparency Act 1998 the order for procurement of transformers is based on accepted eligible criteria,” the release said.
Arappor Iyakkam convenor Jayaram Venkatesan on Thursday alleged that the tenders floated for transformers with capacity ranging from 25kVA to 500kVA during the years 2021, 2022 and 2023 have led to unjust enrichment of bidders and loss to the exchequer to the tune of Rs 397 crores. In the analysis of 10 tenders through which more than 45,000 transformers were purchased at the cost of Rs 1,182 crore, the contractors varying from 25 to 37 in seven tenders have quoted the same price, he alleged.
On the charge that transformers were procured for the price over the sum mentioned in the Government e-Marketplace (GeM) portal, the government said that the contracts were awarded after comparing the quoted price with Tangedco’s cost data and GeM portal. “However, comparing the present GeM portal prices is not good practice,” it said.
It also said that in the complaint, they have just calculated the copper-wound transformers’ price by increasing the price of aluminium-wound transformers by 25% and calculated the loss.