6 Oct 2012 Hindustan Times (Chandigarh)
Vishal Rambani
PSEB ex-chairman in trouble over R350cr tender to Spanco THE MUMBAI-BASED FIRM WAS DECLARED INELIGIBLE INITIALLY, GOT PROJECT IN RE-TENDERING

PATIALA: The role of HS Brar, the then chairman of the erstwhile Punjab State Electricity Board (PSEB), has come under the scanner for awarding a Rs 350-crore IT tender to Mumbaibased private firm Spanco. The firm, chosen via a questionable re-tendering process over giants like Infosys, has received flak for its faulty billing and complaint registration system that was to be implemented in 47 towns of Punjab. So far, Patiala and Mohali have the system.

The Punjab State Power Corporation Limited (PSPCL) is now contemplating quashing the allotment. Brar, who has since retired, has said the decision to retender the project, sponsored by the Power Finance Corporation (PFC), was taken “collectively”. But records show it was Brar who took the final call.

After Spanco was declared ineligible for the July 2009 tender on technical grounds for not possessing the required knowhow, instead of hiring a reputed company, RK Sharma, the then superintending engineer (IT) sent an email on November 13, 2009, to the shortlisted companies informing them of postponing the opening of financial bids. On file, there is no reason assigned for the postponement. Sharma, talking to HT, claimed he did so on the verbal orders of Brar.
After halting the process, the then chief engineer VK Sungal had proposed on file that PFC “has now changed some guidelines for selection of company and that can save some money”. He had added, “Now we have two options: to either call re-tender or go ahead to open bids.” It was Brar who gave the go-ahead for re-tendering, which was done in January 2010. And after the process, the tender was finally allotted to Spanco in April 2010.

Between the decision to quash the first tender process and orders for re-tendering, Spanco overcame the technical shortcomings by partnering with IT major Accenture and got empanelled with PFC in December 2009, a month before the re-tendering was done. (Accenture ended its agreement with Spanco earlier this year over non-payment of dues by Spanco.)

PSPCL chairman and managing director KD Chaudhary, who was member (distribution), PSEB at the time, claimed he was against re-tendering. “As Brar was inclined towards re-tendering, I asked him to take the final decision. He did not consult me or any other member.” Chaudhary had earlier also told HT that he had held back Spanco’s payment of Rs 100 crore after complaints of its faulty system.

Brar remained steadfast on Friday, as he stressed, “It was a collective decision of the board. No one can blame me if Spanco is not doing its work properly. It is the PSPCL that has to get the work done. We had selected the firm by following guidelines of the Power Finance Corporation.”