7 Oct 2012 Hindustan Times (Chandigarh)
Vishal Rambani

PSPCL slaps notice on Spanco over faulty billing system MUMBAI-BASED FIRM GOT R350CR PROJECT IN 2010, BUT HAS NOT PERFORMED

PATIALA: Following massive criticism from consumers and engineers for the faulty online billing work by information technolog y (IT) firm Spanco, the Punjab State Power Corporation Limited (PSPCL) has started the process of terminating the Rs 350-crore project given to the Mumbai-based private company.

A notice has been sent to the company after HT highlighted the concerns, which had gathered steam after Spanco’s technology partner Accenture parted ways with it over non-payment of dues earlier this year.

According to PSPCL chairman-cum-managing director (CMD) KD Chaudhary, he asked the director (distribution) to issue the notice: “If Spanco fails to take corrective measures, we will hire a new IT solutions provider at the risk and cost of Spanco, which was awarded the tender.”
The tender, for billing and complaint registration system, was awarded in April 2010 for implementation in 47 towns of Punjab. So far, Patiala and Mohali have the system, as there have been delays and faults in the systems.

“Bring back the technology partner, or the PSPCL will initiate legal proceedings,” says the notice. Chaudhary said he would now personally supervise the work. There have been questions over the very manner in which the project was awarded to Spanco. In the initial tendering, it was rejected on the technical stage itself, as it did not posses the needed know-how. However, in re-tendering that came after Spanco partnered with IT major Accenture, it bagged the project, which is sponsored by the Power Finance Corporation (PFC).

The PSPCL has been passing the buck to HS Brar, who headed the Punjab State Electricity Board (the PSPCL’s now-defunct predecessor body), but officials are tightlipped over why the top management remained silent for two years when Spanco was missing deadlines. Source said that the sonin-law of a top management official and two close relatives of another official, are among those who have been doing some work outsourced by company.

“By shifting the focus solely on the procedure of allotment of tender, the present management cannot cover its failure in taking work from Spanco. Don’t forget that most of the present management officers were involved in awarding the tender then,” said an engineer. Brar, too, has repeatedly termed the tendering process a collective decision.