Alleged Rs. 500 Crore Irregularity in GHMC Streetlight Maintenance Contract
Allegations of large-scale financial irregularities have surfaced in the Greater Hyderabad Municipal Corporation (GHMC) streetlight maintenance contract, with questions being raised over an alleged increase in the project cost and the selection of a bidder quoting above the estimated rate.
Hyderabad: Allegations of large-scale financial irregularities have surfaced in the Greater Hyderabad Municipal Corporation (GHMC) streetlight maintenance contract, with questions being raised over an alleged increase in the project cost and the selection of a bidder quoting above the estimated rate.
According to the details available, administrative approval was initially granted for Rs. 1,341.60 crore. However, the amount was subsequently increased to Rs. 1,720.80 crore, raising concerns over the additional financial burden.
The contract was approved in favour of a joint venture comprising BAC Infratech Private Limited and Vinci Global Private Limited, despite its bid being 4.49 per cent higher than the estimated cost.
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The benchmark rate for maintaining a single streetlight was fixed at Rs. 147 per month. However, the selected joint venture reportedly quoted Rs. 153.60 per month, which was 4.49 per cent above the benchmark rate.
The decision to award the contract at a rate higher than the estimated cost has triggered allegations of irregularities, with the overall financial implications being described as a potential Rs. 500 crore issue.
The increase in the administrative approval amount, along with the selection of a bidder quoting above the benchmark rate, has raised questions over the tendering process, financial scrutiny and transparency in GHMC’s contract allocation.
The alleged irregularities have brought the multi-crore streetlight maintenance project under scrutiny, with demands for accountability and a thorough examination of the contract approval process.
