JFDC bids for a hush-hush deal

VIJAY DEO JHA

RANCHI

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

The meeting of the JFDC board on Friday gave nod to the purchase. The Pioneer is in the possession of the copy of the agenda of the meeting that does not suggest any prior official deliberations and process under which JREDA was nominated as supplier. Under the Company 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 that gives credence to the doubt, sources said.

Under proposal (Item No. 28/10) JFDC proposes to establish solar powered water pumps with the help of JREDA in the selected 60 villages of Jharkhand with estimated cost of Rs 3.67 crore.

Under Item No. 28/12 JFDC wishes to install 180 solar powered street lights in selected 60 villages in Jharkhand with estimated cost of Rs 0.09 crore. Under Item No. 28/13 JFDC proposes to purchase 80,000 solar powered lanterns for each family involved in  collecting Kendu leaves with the help of JREDA. The total cost involves is Rs 6.08 crore. Each lantern under proposal will cost Rs 850. JFDC Managing Director BR Rallan defended the decision saying that JREDA will supply the equipments under subsidized cost. Though, JFDC being a semi governmental organization, it does not require cabinet approval or prior permission from the government. But, the financial by-law of corporation puts certain riders: bidding first nomination later.

A top official of the Finance Department said: “Since JFDC is a semi-governmental organization mobilizing its own resources may not require prior permission for such purchase. But then, the Supreme Court in one of its decision has categorically said that purchase on the nomination basis should be done in the rare cases. Bidding process is the thumb rule.”

And 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 tender. 

JREDA might have assured supply on subsidized price but it is not the manufacturer of solar lamp and pump. “After all, JREDA will outsource the job to other 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 said.

  

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 MD,” a senior official of JFDC said.