Usha Breco opposes Telangana ropeway O&M contract to DRIL

From January 2019 to July 2022, the ropeways operated by DRIL met with at least five fatal accidents. Still, the HWP failed to take these mishaps into account casting serious doubts about DRIL’s credentials

Usha Breco Ltd (UBL), a ropeway operating company, has shot off a letter to the Chairman-cum-Chief Executive of the Heavy Water Board, Mumbai, urging him against extending the annual operation and maintenance contract of a 9.8 km long bi-cable aerial ropeway system at Heavy Water Plant (HWP), Manuguru, Telangana, in favour of Damodar Ropeway and Infra Ltd (DRIL), which was blacklisted by the Jharkhand government recently.

The ropeway carries coal for the captive power plant at the heavy water project and Khammam.

In a letter to the HWB, formed in 1969, which runs at least nine ropeways in Gujarat and other states, has said that the chairman should direct HWP to invite a fresh tender for the award of the work thereby engaging a more competent agency after the present contract expires on August 31.

UBL has said that as HWP is the largest functional heavy water production facility in India, it should follow a fair and transparent bidding process as laid down in the manual. However, the procurement process carried out by HWP smacks of bias towards DRIL. Maintaining that HWB, a unit of the Department of Atomic Energy, should go for maximum participation of bidders, the company pointed out that as the single bidder DRIL has been submitting its bid quote at a price that is close to the estimated price and raises doubts among potential bidders.

UBL stated that the restrictive approach adopted in the tenders issued by HWP by not allowing JVs to participate and barring contractors with experience of O&M of mono-cable ropeway system from participation in the tender and not relaxing the tender criteria leading to DRIL operating the project since 1992 is against the judicial precedents set by various High Courts from time to time. Allowing DRIL to operate the project despite being debarred by JTDC, Ranchi, due to its negligence that led to 59 passengers being stranded mid-air and three deaths. It added that judicial pronouncements demand that the decision of the tender inviting authority must be tested by the application of Wednesbury principle, which must be free from arbitrariness not affected by bias or actuated by mala fides.

UBL first wrote a letter to HWP on July 16, 2022, after it floated a tender on July 8, stating that the conditions of the tender only allow DRIL, the present operating company, to qualify and restrict participation of other bidders. It also sought amendment in the qualification clause.

UBL again wrote on June 12, 2023 to the head (mechanical), HWP, expressing its interest in operating an External Coal Handling Plant (ECHP), including 9.8 km long bi-cable aerial ropeway system and ICHP having 300 tonnes per hour capacity, including all associated facilities at HWP, Manuguru, Bhadradri and Kothagudem in Telangana. Interestingly, the under-secretary (I&M), Department of Atomic Energy, approved HWP for placement of work order on DRIL on 25.08.2023, with a rider. HWP was asked to explore the possibility of vendor development for the instant type of work and seek specific approvals for deviations from CPWD manual/DAE works procedure about eligibility conditions in NITs from the competent authority in future.

“Besides, recommendations of the tender committee to consider the proposal as concerned after opening financial bid, if the cost is found to be reasonable, may be avoided and proposals shall be routed to tender committee at every stage for their consent,” the under-secretary said. The letter implied that an initial extension of four years was to be granted based on NIT stipulations, while for further extension of two years or till a new contract comes into effect, the department was required to approach MF, AEC.

Talking to Bizz Buzz, Jimmy Jacob, company secretary, UBL, says, “However, HWP did not comply with the provisions of the Manual, so also the letter dated 25.08.2023 while issuing the work order dated 17.11.2023 in favour of DRIL w.e.f. 01.09.2023 to 31.08.2024 for implementation of the works mentioned in the 3rd NIT.”

UBL has also said that guidelines issued by the Central Vigilance Commission, Chief Technical Examiner’s Organization (CVC) make it clear that the award of public contracts through open tender is to ensure transparency in public procurement, to maximize economy and efficiency in public procurement, to promote healthy competition among tenderers, to provide for fair and equal treatment to all the tenderers and to eliminate, irregularities, interference and corrupt practices by authorities concerned and that the same is also required and mandated under Article 14 of the Constitution of India, he said. In the instant case, although tenders were invited by HWP by making wide and adequate publicity, however, transparency and fairness were ignored by HWP as the project was awarded to DRIL, who had no prior experience in executing similar projects.

Requesting anonymity, an official of HWP, said, “We are in the process of replying to UBL’s complaint. However, let me tell you that as of now, we are satisfied by the services being provided by DRIL to the company and that we haven’t found any complaint against it here so far.”

From January 2019 to July 2022, the ropeways operated by DRIL met with at least five fatal accidents. Still, the HWP failed to take these mishaps into account casting serious doubts about DRIL’s credentials.

The Jharkhand Tourism Development Corporation Limited (JTDC), Ranchi, on June 24, 2024, based on an investigation report of the fatal accident at Trikut in Deoghar, debarred/blacklisted DRIL for five years from participating in any work of JTDC for its negligence, carelessness and unprofessional approach, while also slapping a fine of Rs. 9.11 crore on DRIL.

Since the project is of national importance, the said action of not extending the tender in favour of DRIL would be in the interest of justice, keeping in mind the poor safety track record of DRIL, casting doubts on the credentials of DRIL in continuing with the project, UBL has said.