Electricity tender dispute between Electricity Board and Finance Department: Important World Bank project in danger

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The controversy escalated to such an extent that the Electricity Board demanded an additional amount of Rs 65 crore 21 lakh from the Himachal Pradesh government, which was flatly refused by the Finance Department.

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Shimla, July 17: A major World Bank-funded project to improve power infrastructure in Himachal Pradesh has come under threat due to a controversial tender process.

The controversy escalated to such an extent that the Electricity Board demanded an additional amount of Rs 65 crore 21 lakh from the Himachal Pradesh government, which was flatly refused by the Finance Department.

The tender, which was created to streamline the power supply of seven major cities of the state, has now come under scrutiny as only one company has quoted Rs 240.84 crore in the tender. This figure is much higher than the initially set tender amount of Rs 175.63 crore. The power board has cited the increase in cost in the last two years as the reason for the increase in the tender bid and has given a detailed explanation to the finance department, justifying the single bid at 39% higher rate than the tender.

Despite the power board’s reasonable justifications, the finance department has objected to the single bid amount of the tender process and has flatly refused to release additional funds to the power board.

The entire project has come to a halt, with the power board clearly stating that the tender will not proceed without a 39% higher rate. The finance department has refused to release the tender amount to the power board, citing the bid amount as too high.Due to the entire tender dispute, the purchase of 26 lakh smart electricity meters has also come to a halt. Now the final decision on the tender matter is going to be taken only after discussion with Chief Minister Sukhvinder Singh Sukhu. The meeting with CM Sukhu can be called strategic to resolve the current tender dispute and take the right decision, which will determine whether this tender will be cancelled and re-issued or not.

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The delay in the tender has put a break on the project in the state’s Solan, Parwanoo, Baddi, Nalagarh, Nahan, Paonta Sahib and Kala Amb cities. The upgrade, especially in Baddi, is important, with planned improvements including upgrading of substations, laying new cables and installing new transformers, which cost an estimated Rs 58 crore.

This infrastructure upgrade is part of the Power Sector Development Program, which is supported by the World Bank through an agreement between the state and central governments under the UDAY project. Successful implementation of this project is necessary for the state to receive further funds from the World Bank.

On July 8, the electricity board sent a letter to the finance department, stressing the gravity of the situation and the need for additional funds to avoid the cancellation of the tender. The finance department has remained firm on its stance, flatly refusing to allocate additional funds and preparing to present its objections to the chief minister.

As the controversy continues, the possibility of re-tendering increases due to the finance department’s objections and the opposition’s concerns. The final resolution of the issue rests with chief minister Sukhu, who will have to strike a balance between the need for fiscal responsibility and the urgent need for infrastructure development.

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Kumud Sharma

https://diarytimes.com/

Continuing the achievement of the journey of effectiveness and credibility of more than 10 years in the career of journalism, as a woman journalist, I am Serving as the founder, promoter and editor of DiaryTimes with the trust and support of all. My credible coverage may not have given a big shape to the numbers, but my journey presents articles that make you aware of the exact and meaningful situations of Himachal’s politics, ground issues related to the public, business, tourism and the difficult geographical conditions of the state and financial awareness. DiaryTimes, full of the experience of my precise editorial expertise, is awakening the flame of credible journalism among all of you, so that the eternal flame of meaningful change can be lit in the life of the people of the state and the atrocities being committed against the people can be brought to the fore, I am motivated for that. If even a small change comes with the power of my journalism and the whole world becomes a witness to that issues, then I will consider myself fortunate.

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