The guidelines and circulars issued by the Central Vigilance Commission (CVC) on awarding consultancy works for various projects show that consultancy and other works can be given on nomination basis without floating tenders.
The CVC guidelines are being misinterpreted to keep away the Delhi Metro Rail Corporation (DMRC) from the Rs.6,728-crore Light Metro proposed for two cities in the State and execute the project in public-private partnership (PPP) mode instead of the turn-key basis as for the Kochi metro, official sources told The Hindu .
Cabinet note
In the Cabinet note to come up before the Cabinet soon seeking clearance for the detailed project report (DPR) submitted on October 8 last, the Finance Department and Chief Secretary Jiji Thomson have opined that the consultancy should be given only after inviting bids and to go for the PPP instead of the turn-key basis.
Circulars issued by the CVC in 1982, 1983, 2006, 2007, 2010, 2011, and 2012 show that it has not banned award of consultancy on nomination basis, but has emphasised that the appointment of a consultant should be done in a transparent manner.
As per this, all consultancy works awarded on nomination basis should be brought to the notice of respective public sector undertakings (PSUs).
Rule 176 of the General Financial Rules, 2005, issued by the Union Ministry of Finance, also gives the nod for selection of a consultant where adequate justification is available for single source “quality-based selection.”
The State Finance Department order ( G.O.(P) No.311/14/Fin dated July 30, 2014) for execution of public works through government-accredited agencies without bidding says various agencies under the State and the Centre having engineering units with qualified and adequate manpower can be considered.
As per this, works can be entrusted without the bidding process to State departments/PSUs which follow (A) the Public Works Department system for execution of works and (B) Department of PSUs under government of India willing to execute it as per State government norms. The DMRC falls under category B, it has been pointed out.
The order goes to prove beyond doubt that entrusting a work to the DMRC on nomination basis does not violate any norms of finance or the CVC, the sources said.
Project officials say the Finance Department, which has issued guidelines for entrusting works to accredited agencies on nomination basis, is adopting a ‘double standard’ in the case of the Light Metro.
CVC guidelines insist on transparency in appointment
Finance Department order of 2014 too is not firm on bidding
Finance Department’s stress on PPP mode a bid to keep away DMRC from Light Metro, it is alleged
