Wed, Jan 01, 2025
Gujarat has been hailed as the go-to destination for investors and has topped the World Bank’s Ease of Doing Business index in the country for several years now. While that is indeed a commendable feat, the corollary that everything is on a similar efficiency level in the state is not true.
A case in point is the recurring flip-flops holding up the tender process for buying information technology products, software and hardware for multiple projects of the state Home Department.
Interestingly, both the portfolios, Home and Science and Technology, are held by Chief Minister Bhupendra Patel.
The state government advances a new IT policy every five years, which includes allocations for purchases. But over the last three years, tenders have not been cleared.
The Gujarat government routes IT purchases of more than Rs 1 crore through Gujarat Informatics Ltd (GIL), which comes under the Science and Technology Ministry.
As per its demands, GIL issues tenders and the IT Committee and the Purchase Committee-Information and Technology (SPC-IT), comprising the Additional Chief Secretary, Industry and Mines Department, Department Secretary and other senior officials including the heads of that department, approve or reject it.
However, the long delays in tendering or in deciding have left many projects in limbo including centrally funded projects, policing projects, storage and Wi-Fi facilities in colleges. Let’s take a look at them:
Nirbhaya Project
After the Nirbhaya gangrape of 2012 in Delhi, the Centre created a fund for a CCTV surveillance system in all states and union territories for the protection of women and girls. Gujarat received Rs 200 crore from this fund.
In September 2019, the Home Department issued a tender for CCTV surveillance on the Ahmedabad riverfront, a sensitive area. This tender was cancelled thrice within a year.
When it was floated in March 2020, many big names participated, though Bharat Electrical Ltd was disqualified without ascribing any reasons. The company filed a written complaint with the state government. The tender was set on a Quality Cost Based System under which the bidders were evaluated, with 70 marks on presentation and 30 marks on price. The tender was to be given to the company, which scored the highest of the total.
One company bid for Rs 175 crore while another bid for Rs 213 crore. Inexplicably, the company that quoted the higher price got only half a per cent marks more than the company with the lowest price.
Thus, Larsen & Toubro, which was charging more, was declared L-1. The government awarded it the tender after bringing the price down by a further Rs 10 crore to Rs 203 crore.
The company got 10 per cent of the Rs 200-crore contract as an advance in March 2022 as per the contract. Work is yet to start two years later.
Police CCTV Project
A Supreme Court verdict in a public interest litigation in 2021 ordered there to be CCTV surveillance in several locations within police stations to curb police brutality and custodial deaths.
The order specified that CCTV footage be maintained for 18 months as well and many states have implemented them. In Gujarat, a tender was issued for this in March 2022 and retracted without any reason.
It was reissued with significant improvements on the GIL website a few months later. But once again it was retracted within three hours. Finally, a Rs 300-crore tender was re-reissued this month.
Vijay Nehra, Secretary, Science and Technology, refused to take this tender to the SPC-IT Committee. Finally, the file was sent to Minister of State (Home) Harsh Sanghvi. After a wait of four months, the tender was reissued a month ago with amendments. Some companies have bid for it and more bids are still coming in with no news on when it will be closed.
Vishwas-2 Project
After the Phase-1 tender for installing CCTV cameras in sensitive areas had fallen through, a tender for Rs 250 crore was released for sites in Ahmedabad, Surat and Vadodara under Vishwas Phase-2 in December 2022. This tender is divided into four parts: scanning vehicle number plates, direct penalty and fine notice issuance and other functions. It is in limbo for the last 18 months.
Chief Minister Patel had to issue a stern warning after a year of filling the tender, a month after which the SPC-IT committee got to work and issued work orders. Despite such a large tender and the requisite approvals, the winning bidder has been able to secure just Rs 30 crore of work.
SICN: Sachivalaya Integrated Communication System
The tender to install advanced instruments for landlines in various Sachivalaya offices has been hanging fire since 2017. It has been issued and cancelled thrice and then again reissued.
In February 2022, it was issued again at a value of Rs 80 crore. After several bids, the tender was given to the L-1 bidder. Even after issuing the tender, the company had to renegotiate prices and didn’t get a work order in spite of lowering prices. And again, it was cancelled four months ago without any reason.
Object Storage
The tender for increasing storage capacity at the Department of Science and Technology data centre was released a year ago for Rs 15 crore. After completing all procedures, the company did not get a work order and was asked to further lower prices. Eventually, even this tender was cancelled.
Anti-Virus for Data Centre
A tender for installing antivirus solutions in the Data Centre was issued in 2022. Three companies submitted tenders and it was decided to give this tender to the L1 bidder for Rs 21 crore after negotiation.
When the file came up for approval at the SPC-IT committee, it was found out that all three had filed to supply the same product, leading to the tender being put on hold.
After that, the secretary Vijay Nehra was transferred to Delhi and Principal Secretary Mona Khandhar was given charge. When the SPC-IT Committee met a month ago, GIL officials told Khandhar that the product in the tender, supposedly worth Rs 21 crore was available for Rs 6 crore. On hearing this, she ordered the cancellation of the tender immediately.
Wi-Fi Project for Colleges
The Higher Technical Education Department issued a Rs 60-crore tender for setting up Wi-Fi in all colleges in the state. Later, Additional Chief Secretary S. J. Haider of the department was transferred. The newly appointed officer, Mukesh Kumar, studied the tender and decided every college would provide for these from their own budgets, to prevent any extra burden on the government.
Thus, this tender was also cancelled.
They say success has many fathers while failure has none. No official has been willing to come on record to comment on the flip-flop over tenders. Nor is there any information on the GIL website. While Gujarat is likely to continue ranking at the top or near the of the table as far as ease of doing business rankings are concerned, its record on deciding tenders seems to be a factor that does not gel with its overall image as a business-friendly state.