JFDC skips bidding in hush-hush deal

The intent of the Jharkhand Forest Development Corporation (JFDC) to purchase solar-powered waterpumps, lights and lamps worth Rs 9.5 crore from Jharkhand Renewable Energy Development Agency Ltd (JREDA) without adhering to the bidding process has left many baffled and believing that it is another scam is in the making.

The meeting of the JFDC board on Friday gave it approval to the purchase. The Pioneer is in possession of a copy of the agenda of the meeting, which does not suggest any prior official deliberations and process under which JREDA was nominated as supplier.

Under the Companies Act, it is mandatory to provide copy of the agenda to the members at least a week before. But here, the copy was circulated barely 12 hours before the meeting, giving credence to the doubt, according to sources.

Under the proposal (item no. 28/10), JFDC proposes to establish solar-powered waterpumps with the help of JREDA in selected 60 villages of Jharkhand at an estimated cost of Rs 3.67 crore.

Under item no. 28/12, JFDC wishes to install 180 solar-powered streetlights in selected 60 villages in Jharkhand at an estimated Rs 0.09 crore.

Under the next item, JFDC proposes to purchase 80,000 solar-powered lanterns for each family involved in collecting kendu leaves with the help of JREDA. Total cost involves is Rs 6.08 crore. Each lantern under the proposal will cost Rs 850.

All JFDC managing director BR Rallan could say in defence of the decision was that JREDA would supply the equipment at subsidised cost.

JFDC being a semi-Government organisation, does not require Cabinet approval or prior permission from the Government. But the financial bylaw of the corporation puts certain riders — bidding first, nominations later.

A top official of the finance department reiterated the point, saying, “Since JFDC is a semi-governmental organisation, mobilising its own resources may not require prior permission for such purchase.  But then, the Supreme Court, in one of its decisions, has categorically said that purchase on the nomination basis should be done in rare cases. Bidding process is the thumb rule.”

These rare situations for purchase under nomination basis are if the said company is either sole custodian of that particular product or sole manufacturer; or if the Government is running short of time to float a tender.

JREDA might have assured supply on subsidised price but it is not the manufacturer of solar lamps and pumps. “After all, JREDA will outsource the job to another party. You can’t rule out the possibility of other State-run or private manufacturing units offering you products at cheap rate if bidding process is done,” another senior official pointed out.

Sources in JFDC hinted that Rallan seems to have particular interest in this purchase and JREDA is his personal choice as prospective supplier. “Nothing was discussed in the previous board meeting. The proposal was mooted and piloted by the managing director,” said a senior official of JFDC.