Irrigation scam: ‘Illegal’ tenders worth over Rs 500 crore surface

The erstwhile regime had itself made completion of land acquisition process, and environment and forest clearances a pre-requisite for irrigation contracts, following a recommendation made by a Special Investigation Team (SIT) appointed to probe the allegations. But sources confirmed that this was overlooked in the run up to polls. The controversy has now come to the fore with the impact of the state administration’s move to tweak the process for awarding irrigation contracts in a bid to break monopoly of select contractors now being felt.

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During the month-long President’s rule in Maharashtra between September and October last year, the state administration had discontinued the process where pre-qualification bids were accepted for irrigation contracts. It was decided to replace it with e-tenders that were to be floated post qualification for all irrigation works. Sources further said that the Devendra Fadnavis government persisted with the revised model after some resistance.

Accordingly, about 143 tenders, collectively worth Rs 697.82 crore, that were floated in the run up to polls but where work orders were yet to be issued were scrapped. These were to be recalled under the revised model. While scrapping the tenders, Water Resources Minister Girish Mahajan had even fired barbs at the Congress, NCP regime, alleging that department engineers had been pressurized to go ahead with these tenders without the mandatory checks.

Out of the 143 projects, the department has now been able to reissue tenders for barely 18, collectively worth Rs 45 crore. Following a review on the status of the other proposed works, senior department engineers confirmed that tenders won’t be reissued for 75 projects as they were “just not ready to be tendered.” The review revealed that land acquisition process and environmental clearances were yet to be completed for most of these. Several others did not fit the government’s priority list of works. With committed liabilities in excess of Rs 40,000 crore, the previous regime itself had taken a decision that only last mile projects would be taken up on priority.

Incidentally, the Vidharbha Irrigation Development Corporation (VIDC), and the Maharashtra Krishna Valley Development Corporation (MKVDC), which courted the most allegations in the irrigation scam, are at the centre of the new controversy too, with concerns that most irregular tenders were floated in these.

The MKVDC has so far floated only 5 of the 47 scrapped tenders. According to an official statement on the status of the remaining works, the MKVDC has said that tender process was under progress in 17 others. It has conceded that 12 tenders, worth 177.31 crore, were originally floated without acquiring project land. Six others do not fit in the state’s priority list. Similarly, the VIDC, where 54 works collectively worth Rs 263 crore were tendered for in the run up to polls, too has managed to reissue only 5 tenders. The Tapi Irrigation Development Corporation has reissued 11 of the 21 tenders it scrapped under government orders, whereas the Konkan Irrigation Development Corporation has reissued two of four tenders.

Senior officials also alleged that the original bids were highly overpriced. A retendered contract for an irrigation contract in Nashik has attracted bids that are 17 per cent below the originally awarded contract. Malini Shankar, Additional Chief Secretary, Water Resources Department, said, “We have just brought the tender process for irrigation projects in line with the government’s overall policy.”

Shankar pointed out that tenders for the Public Works department contracts and information technology contracts were already awarded post qualification. Former Water Resources minister and state NCP chief Sunil Tatkare said that the modification of the tender process was initiated during his tenure in the department. “I initiated it. Also we (the Congress, NCP government) accepted Chitale (SIT) committee’s recommendation on land acquisition in August. I do not know whether these tenders were floated after that.”

Tatkare had stepped down from the government in August, with NCP leader Hasan Mushrif taking over from him. Mushrif was unavailable for comment. Tatkare, meanwhile, said it “would not be right to assign any malafide intention to a rush of project works in the last leg before polls.” He said, “It happens in all departments. Elected representatives push pending works of their constituencies.”