It has been six months since the contract for running toll tax collection at Delhi’s 124 border crossings expired on May 15 and on Tuesday the process to find a new concessionaire finally got on track.
The Standing Committee on South Delhi Municipal Corporation, which is coordinating the process for all three civic bodies, on Tuesday passed the proposal for floating a new tender document.
While the document is itself delayed, the Opposition Congress has alleged that there are many financial irregularities in the tender. The previous contract gets the three corporations Rs.425 crore per year. A survey conducted by Shriram Institute for Industrial Research put the amount for the new contract at Rs.1,922 crore based on the number of cars entering Delhi.
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However, the tender being floated by the SDMC has set the minimum reserve price at Rs.878 crore, an amount Leader of the Opposition Farhad Suri said was flawed. Mr. Suri said this was done to give undue favour to the contractor.
The SDMC’s proposal had deducted 15 per cent in profits, 5 per cent in modernisation charges, 7 per cent on collection charges and Rs.112 crore in losses due to pass-holders among others to reach the number of Rs.878 crore from Rs.1,922 crore.
Leader of the House Radhey Shyam Sharma admitted that the amount was deliberately lowered, but added that it was to increase the number of bidders. “Just because we have set the minimum reserve price at Rs.878 crore doesn’t mean we will finally award the contract at that amount,” said Mr. Sharma.
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Currently, an extension given to the present concessionaire expires in November and officials said it was unlikely that a new contract would be in place by then.