LV Subramanyam Questions CRDA TRANSCO Tender Scam

Amaravati: The Andhra Pradesh Transmission Corporation Ltd (AP TRANSCO) Vigilance division and State Vigilance department have brought to AP Chief Secretary LV Subramanyam's notice about three TRANSCO tenders which were offered right before the AP elections. The Vigilance team had earlier submitted a detailed report to the AP government about the irregularities in awarding these contracts, but the State Government turned a blind eye.

The CS is said to have understood that the basic conditions for awarding the tenders to these companies were not fulfilled, which were allegedly given to them in a hurried manner. Taking a serious note of this violation the CS is said to be examining all the files and documentation pertaining to these contracts since the past two days.

As part of the AP state capital development, AP TRANSCO proposed to lay lines for electrification in the Capital region. World Bank loans were brought forward for the Capital Region Development Authority to start these works. They called for tenders for laying of electric lines and building 400 KV Sub Stations in Gudivada, Chilakaluripeta and Eluru. These tenders were called for right before the elections. Though many companies had come forward, TRANSCO was looking at companies which would bid the lowest. TRANSCO quoted Rs 600 Crore for the Gudivada lines and sub-station contract. But a few companies had quoted less than that.

AP TRANSCO subsequently, levied conditions that the companies should have completed 10 % of basic infrastructure activities within a year. They also said that companies which had done housing and infrastructure projects were also allowed to file the tenders. They also said that the company should have completed one line and substation project. These kinds of conditions were not levied earlier and with these terms only three companies had participated in the tenders, which was accepted and they were allotted different works.

Interestingly, these companies were given four percent more work than the quoted work in the tender. It is alleged that out of the Rs 1,200 Crore worth of tenders, Rs 120 Crore is said to have changed hands. The tenders were filed in the first week of March and allotted right before the Model Code of Conduct came into force. The projects were also confirmed and quickly started. Though the Vigilance department apprised the Government of this no action was initiated. The current CS LV Subramanyam who has been initiating review meetings is now said to be looking into the tender details.

Role of JMD in the Tenders Process

The Chief Secretary has also received complaints about the role of the TRANSCO Joint Managing Director (JMD) in the tender dealings. The JMD who was from the Income tax department, was on deputation to the TRANSCO office. It is said that the Government had given him a lot of importance and he was promoted from a directorial cadre to a JMD level. As per sources in the TRANSCO department, a Telugu Desam Party MP tried to extend the JMD's stay in TRANSCO even though his deputation period was over by trying to influence officials at the Central level.

However, the JMD had to return to the IT department as complaints were sent to the Centre about the completion of his deputation period. Nevertheless, he was there until these three contracts were officially awarded and ratified by him.