Civil supplies dept dragging feet on competitive bidding

PATIALA: Even as the Competition Commission of India (CCI) is probing the alleged cartelisation of firms in supplying tarpaulin to Food Corporation of India, near similar trend has been prevailing in the Punjab food and civil supplies department.

The issue was recently brought to the notice of Punjab chief minister’s office (CMO) and it sought a reply on the matter from the department, but there is no change in the conditions to encourage competition.

On September 5, the director general, CCI, raided the premises of four companies supplying tarpaulins to the FCI. The raids were conducted in Delhi, Himachal Pradesh, Punjab and Haryana.

All firms, which bagged the tenders for supply of tarpaulins and other products in Punjab in the recent years, too, are under scanner of the CCI as they were found to be bagging the tenders in rotation. Food and civil supplies department purchases tarpaulins worth ₹50 to 70 crore every year to cover paddy and wheat it procures on behalf of the Punjab government.

“It has been brought to the notice of the CM that foodgrain procurement agencies’ policies don’t encourage local firms to take part in bidding for supply of products,” secretary to CM wrote to the food and supply department on July 12. After that even Invest Punjab head Vini Mahajan too issued a notification for giving relaxation to new firms.

ENCOURAGE NEW FIRMS

Despite this, the food and civil supplies department didn’t amend the conditions for the bidders.

In a notification issued on August 16 this year, the department of industries and commerce said the Punjab departments should be given exemption in criteria of past experience and the turnover threshold to encourage new companies. However, changes have not been made yet.

“Yes, we suggested to amend conditions in the tender, but higher officials didn’t listen. For procurement of wooden crates, a top official intervened and put a clause to end cartelisation, which brought down the rates by 20 per cent as compared to the previous year. For tarpaulins, tender conditions are the same for last 15 years, which should be changed,” said an official, requesting anonymity.

Local manufacturers are also miffed with the government for not implementing exemptions suggested by Invest Punjab.

“After signing MoU under the Invest Punjab scheme, I invested ₹10 crore and started manufacturing tarpaulin and other plastic products. I am ready to sell products at competitive rates, but conditions don’t encourage competition. How can a new player show past experience and government procurement orders of a certain amount? I approached the CMO and they have sought a reply from the department. The relief is yet to come,” said Rajesh Kumar of Patiala.

When contacted, food and civil supplies principal secretary KAP Sinha admitted that conditions for the bidders were the same for last 15 years. He said the CMO has sought a reply, which has been sent.

Sinha said he has directed the officials to implement all guidelines of the government, including those of Invest Punjab. On CCI raids, Sinha said he is aware of the CCI raids to check cartelisation in such purchases in the Food Corporation of India, but “I can’t act till the CCI passes an order”.

Attempts to reach food supply minister Bharat Bhushan minister over the phone went futile.

ALL FIRMS THAT BAGGED TENDERS TO SUPPLY TARPAULINS AND OTHER PRODUCTS IN PUNJAB WERE FOUND TO BE BAGGING THE TENDERS IN ROTATION