CVC Study on Power Sector

8/9/2019 CVC Study on Power Sector

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By:Chief Technical Examiner’s

Organization

Central Vigilance Commission

Preventive Vigilance in PublicProcurement

~: Study based on the PowerSector :~


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IntroductionChief Technical Examiner’sOrganization Setup in !"#$ in %o&$'(S

To secure economy in expenditure and)etter technical ( *nancial control+

Santhanam Committee ,!-./ Extend 0urisdiction o1er construction 2or3

of all other ministries also+ To )e )rought under CVC+

Studies Civil, Electrical$ %echanical$ C(I$4urchase$ IT Contract a2ard and execution+


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Pre – Tender Stage

5ppointment of Consultants

4reparation of 6478Estimates


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4reparation of

6478EstimateCommon de*ciencies Estimated made in hurried manner

9ac3 of conformity )82 1arious schedules of items$dra2ings$ speci*cations$ and contract conditions$

etc+ Estimated made on last accepted rates )asis only +

4resent mar3et conditions also to )e accounted for

Cascading eect ,higher LPP ! higher EvaluatedCost ! higher LPP/

Estimated not prepared on actual site conditions Borro2ed ;uantities from similar pre1ious pro0ect

7esult: 6elays$ 6e1iations$ Time (8 costo1errun


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Example +Earth *lling pac3age < Estimated Cost:"# Cr 9 ;uoted price : $%& Cr' ,#-= higher/

TC again e1aluated estimated of $(( Cr )yadding non>standard stipulations li3e localarea taxes$ etc+

?inally$ re>tendering of 2or3+ @e2 estimate ,$(# Cr / 2ith )orro2 area lead

distance of $) *+ instead of original ) *+ @e2 9 ;uoted price : $&% Cr' Option of 4SA’s explored$ a2arded to @BCC:

$$- Cr


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52arded 1alue of Cr againstestimated cost of . Cr doesn’t seems

0usti*ed+

5ctual execution of 2or3 from )orro2area of D>" % only$ )ut re1isedestimate 2as prepared on lead distanceof D %+ 'ence$ a2ard of contract

2ith lead area of D % not 0usti*ed+ 5lso$ resultant payments 2ith D%lead distance turn out to )e inFated

and un0usti*ed+


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Example G+ 6etailed estimate for a po2er pro0ect HE’ )ased

on the pre1iously executed po2er pro0ect O’+ 4ro0ect HE’ 2as an e./ansion /ro0ect$ 2here

the electricity ( 2ater 2as supplied to the

contractor free of cost+ In pro0ect HO’contractors 2ere to arrange electricity ( 2atersupply+ O)1iously$ the estimated cost of pro0ectHE’ should ha1e )een less than for the pro0ectHO’+

In the same estimate$ ;uantity of HExtraction ofroc3’ in the C'4 area de1iated from ((( cumto 1((( cum$ 2hich indicates that estimate2as not prepared on the )asis of actual site

conditions+


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Example .+ In a 4SA$ the estimate for a 2or3 2as

prepared for 7s+ ""+# crores+

Estimated cost of plants$ e;uipments (auxiliaries deri1ed from the L% bid

recei1ed for some other similar ongoing2or3+

The ;uoted rates of 9 )idder 2as 7s+.-+. crores$ 2hich 2ereapproximately ."= lo2+

Estimates 2ere seemingly 3ept on thehigher side+


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Example D+ In one 4SA$ 2or3 2as a2arded on ST to another

4SA 2ithout a realistic estimated cost+ 5s initialcost 2as not properly 2or3ed out )efore$ amountof 7s+ .+" Cr 2as allo2ed a)o1e the initial cost2ithout 0usti*cation+

Sanction 5mendment letter of the cost estimate2as issued after " months of issue of 9O5+

%any a times the 2or3 a2arded on ST to the4SAs are getting executed through pri1ateagencies )y a )ac3 to )ac3 arrangement+

eeping higher estimates in the )eginningresults in a2ard of 2or3 at higher rates topri1ate parties in a non>transparent 2ay+


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Tendering Stage

4reparation of Tenderdocuments

In1iting and Opening of tenders

4re>Juali*cation E1aluation of Bids and a2ard of2or3


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4reparation of Tender

6ocumentsContract K 9egal 6ocument4oor 5greement: 4oor contract performance$ delays$ cost o1er>

run

9itigation

Opportunity for contractor to ma3e undue pro*t

7easons of poor agreement:

Tender documents prepared in hurried manner 4repared )y 1arious sections$ no conformance

Copied from older tender documents

Clu))ing of contracts$ @o modi*cations


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Example + @IT en1isaged 6esign$ %anufacture$ Supply$

Erection$ Testing and Commissioning,6%SETC/ of the proposed pac3age

One trading *rm re;uested for 2ai1er of

6%SETC as it itself didn’t ;uali*ed the criteria 4SA modi*ed it’s 4J7 to allo2 )idding )y

parties ha1ing design ( manufacturingexperience and intimated all the )iddingparties

4SA intimated of amendment only toparties 2ho had purchased )id documentsagainst original @IT$ hence inade;uate

pu)licity+


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Example G+ Tender Conditions stipulated pro1ision of

penalty in case of failing to meet theguaranteed po2er consumption

4enalty Ceiling of = of Contract Value

@o threshold or minimum po2er consumption

'ence$ Bidders could deli)erately 3eepminimum po2er consumption to geta2ard

If fail to consume the minimum po2erconsumption$ get a2ay 2ith only =penalty

@on>o)0ecti1e e1aluation


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In1iting ( Opening of

TendersOpen Tendering %ost preferred

9imited Tendering

Small Value Argent 2or3 ?e2 )idders in mar3et

Single ,@ominated/ Tendering Exceptional cases K @atural calamities$

Emergencies 4roprietary Items in case of goods

procurement

@o )ids inspite of repeated tenders


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7eceipt ( Opening of Tenders Circular @o+ ">D>>CTE> dt+ +-+GD

Suitable arrangements 2or recei/t o2

sealed tenders at the scheduled dateand time through conspicuously locatedtender )oxes needs to )e ensured+

In case of )ul3y tender documents the/rovision 2or submission o2 bids todesignated o3icials by hand should )emade in the tender document itself+

Open the )ids in the presence of )idders+


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Example + One 4SA in1ited oers from t2o arbitrarily

chosen *rms$ %8s 5 and %8s B for an osite area2or3 ,7s+ . Cr/ for pretender tie up+ +4s 5 )ecame the lo2est+

The 4SA then reinvited the bids from these t2o

*rms after deleting t2o items i+e+ structural steeland sheeting+ This time +4s 6 )ecame the 9>+

5gain a re1ised )id for the third time 2as in1itedonly 2rom +4s 6 after adding item of sheeting+%8s 5 in their re1ised )id 2hile 7uoting higher

rates for sheeting$ also increased their rates forother items also+

The total pre>tender tie>up 2as entered intoin a non>transparent ( unfair mannerresulting in undue )ene*t to one contractor+


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Example G+ The 4SA HE’ in1ited )ids for SL area 2or3

costing 8s' 1) Cr from arbitrary subcontractors 2ithout any J7+

%8s H5’ oered highest margin and )ecame '>+

'o2e1er$ it 2as re0ected )y the client 4SA HC’stating that %8s H5’ 2as not meeting itsre;uirements > PS9 C; had not earliersti/ulated any /articular


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&hole su)>contracting process 2as non>transparent and 2as left to the mercy of theclient 4SA HC’+

In this case$ a clear cut J7 for su)>contractors

should ha1e )een stipulated )y the 4SA HC’ inthe tender document itself$ instead of ar)itraryre0ection of proposed su)>contractors+

In fact the 4SA HC’ should ha1e 3ept itself

a2ay from suggesting the names of the su)>contractors+

5lso$ the 4SA HE’ should ha1e prepared a panelof su)>contractors in a transparent 2ay+


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Example .+ In one case$ 2hile in1iting tenders$ the pu)licity

made for short>listing of )idders 2as stated toha1e )een gi1en in 1arious ne2spapers and alsothrough the 2e)site+

5 copy of only one ne2spaper cutting 2asmade a1aila)le+ Organization 2as not sureif the same had appeared in all thene2spapers en1isaged+

5lso in the tender notice$ no details ofeligi)ility criteria$ pro)a)le cost of 2or3$etc+ had )een mentioned$ neither anyreference to the a1aila)ility of the detailed

tender information on any 2e)site+


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Example D+ In one of the tenders a condition 2as

incorporated authorizing the )uyerorganization to a2ard contract to the nextlo2est e1aluated )idder ,9G/ in the e1ent of the

failure of the 9 )idder to sign the contract andfurnish performance security+

This is in 1iolation to Commission’sguidelines on the su)0ect 2hich prescri)es

that if 9 )idder )ac3s out due to anyreason$ there should )e a re>tender in afair and transparent manner+

Splitting of 2or3s )et2een 9 ( 9G parties

2ithout pre1ious such noti*cations in @IT+


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Example "+ In one case$ a stamp 2as put on each page of the

9 price )id$ containing date of opening (signatures of the mem)ers of the tender openingcommittee+ 'o2e1er the column for the num)erof corrections 2as 3ept )lan3+

The 9 corrected 7uoted amount 2as 7s+D+#! crores$ 2hich 2as 0ust 8s' lac less thanthe 9G ;uote of 7s+ D+D crores+

In the price )id$ a = discount on total price

2as mentioned )elo2 the stamp and signature ofthe TOC+

This insertion also 2as not attested )y the TOC+

&hen 2as the discount percentage addedMMM


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Example -+ In one case$ the covering letter o2 the /rice

bid of one of the )idders to 2hom the 2or3 2as*nally a2arded 2as having a list o2 all thedocuments enclosed in the )id+

'o2e1er$ a letter indicating a discount wasalso enclosed )ut this letter 2as not havingany mention in the covering letter of theprice )id 2hich 2as containing the list of all theenclosures+

Incidentally$ this )idder could )ecome 9 onlyafter considering the discount as per this letter+

4ossi)ility of discount letter )een added ata later stage exists+


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4re>Juali*cation:

6e*cienciesTo select competent contractors 2ithtechnical and *nancial capa)ilitycommensurate 2ith the su)0ect 2or3re;uirement through ade;uatecompetition

Stringent 4J7 N 4oor competition

7estricti1e 4J7 N Barriers to potential )idders

E1aluating criteria not noti*ed to )idders4J7 relaxed during e1aluation

Credentials of )idders not matched 2ith 4J7

Credentials not 1eri*ed

Completed 2or3 credential 18s 2or3 in progress


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Example + 4J7 for ci1il 2or3s of hydro plant re;uired

)idder to ha1e achie1ed concreting of G"cum8month+

One )idder re;uested for lo2ering of capacity

to G cum8month$ )ut *nally su)mittedexperience certi*cate of G" cum8month

&or3 a2arded to the same )idder

4arty re;uested for lo2ering of J7$ hence

it o)1iously didn’t e1er had theexperience+

'ence$ certi*cate needed close 1eri*cation+


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Example G+ 5m)iguous 4J7 In transmission line pro0ect$ 4J7 re;uired

successful completion of G ,t2o/ pro0ects ofsimilar nature )y the )idder and$

Completion of G % of route length

&hether t2o pro0ects 2ith )oth ofindividual completed route lengths of

G %$ or&hether t2o pro0ects 2ith cumulative route lengths of G %


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Example .+ In a case of a2ard of mechanical pac3age )y a

4o2er 4SA for 2or3 of G %&$ only t2o2or3s of G %& 2ere en1isaged to )ecompleted )y the prospecti1e )idders+

5gainst this$ a *rm to 2hom the 2or3 2asa2arded produced t2o certi*cates ha1ingcompleted 2or3s of G %& and G %&only+

The 4J7 appeared to )e s3e2ed in fa1orof the *rm to 2hom 2or3 2as *nallya2arded+

Incidentally$ the *rm pro1ided these t2o

certi*cates also only after opening of )ids+


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Example D+ In a2ard of E(% pac3age )y a 4SA$ the J7

en1isaged ma0or share of contri)ution )y theleader in case of the Point Venture )idder$

5s per the )id proposal of a PV$ the leader )eing

a foreign company indicated ma0or supplies fromtheir oshore 2or3 )ut in the price )ids$ thedistri)ution of 2or3s appeared such that ma0orportion 2ould )e supplied )y Indian partner+

4rima>facie$ the PV got the a2ard )y

circum1enting the prescri)ed tender J7 asthe 2or3 distri)ution 2as am)iguous+

Circum1ention o1erloo3ed )y a2arding 4SA


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Example "+ The original J7 en1isaged$ a speci*c technology

)ased e;uipment ha1ing satisfactory operationfor at least two years as on the 5=>+

The 4SA amended the J7 through a corrigendumin a 2ay that the amended J7 did not specify any

period and rather en1isaged that the e;uipmentshould )e in satisfactory operation on BO6+

This re;uirement 2as ful*lled )y the fa1ored *rm)ased on a user certi*cate stating that theoered e;uipments 2ere 2or3ing satisfactorily

since ?ovember, %((( as against the 5=> o2 @une, %(($' , %onths/

The period of successful operation of thee;uipment 2as deli)erately not speci*ed inthe amended J7 to suit a particular *rm+


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Tender E1aluation and

52ard%ost sensiti1e area suscepti)le to corruption+Chec3points: E1aluation of tenders as per the noti*ed J7 only

Timely decision 2ithin 1alidity period

@egotiation 2ith 9 only ,"8C768G dated.+.+#/

Conditions8speci*cations are not relaxed in fa1or ofthe 2inning contractor ,!8O768 dated D+!+./

9 is not ignored on Fimsy grounds Ensuring that 2or3 order8supply order is placed

2ithin 0usti*ed estimated rates+

6etails of a2ard on 2e)sites ,"8VL98D dt+-+.+"/


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Example + In a 4SA$ tenders 2ere in1ited under ICB+ 5fter

detailed e1aluation of the )ids$ a PV *rm 2ith its;uoted price of 8s' 1( Cr )ecame 9+

The Arm was invited 2or /ost tender

discussions+ 6uring discussion$ Arm started /utting

certain unwarranted conditions$ e+g+exemption of taxes ( duties etc+ 2hich 2ere notmentioned in the *rm’s original oer+

6ue to reluctance of the *rm$ the 4SA con1eyedthat in case they did not come 2orward in/ost tender discussion, their action would

be treated as withdrawal o2 bid+


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In the mean time$ the minor @V /artnera//roached the PS9 2ith the re;uest thatsince the ma0or partner of the PV is )ac3ing out$they might be allowed to re/lace the ma0or/artner 2ith the *rm of re;uired credentials+

4SA allo2ed the minor partner to propose ane2 ma0or partner 2ithin a period of D 2ee3s)ut the minor @V /artner could not suggestone'

In this )ac3ground PS9 decided to go 2or asna/ bid among the agencies 2ho participatedin the original )idding and *nally one of thoseemerged as 9> )idder 2ith its ;uoted price of8s' 11 Cr'


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5 ne2 line of thought emerged 2hether the actionof the original 9> )idder should )e treated as withdrawal o2 o3er or the bid had becomenonres/onsive'

5 decision 2as ta3en to not to 2or2eit the E+> o2 8s' &'( Cr on the plea of the )id )ecoming non>responsi1e+

'o2e1er$ the o/inion o2 B+ LawD of the 4SA2as that since the conditions put forth )y 9> *rm2ere un2arranted and 2ere after opening of the)id$ as such their action amounted to withdrawal o2 bid necessitating 2or2eiture o2E+> of 7s+ !+ crores+

The opinion of L% ,9a2/ 2as also not /laced

be2ore the board for ta3ing decision on this issue+


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4utting any conditions contrary to the)id re;uirements )y the )idder at thetime of /ost tender negotiations

amounts to stalling the process of*nalization of tender and$ e1entually$ withdrawal o2 the o3er +

The 1ie2 ta3en )y the 4SA$ against the

ad1ice of its 9a2 6ept+$ had gi1en anundue *nancial )ene*t of 8s' &'( Cr tothe )idder+


35/59

Example G+ 4SA H5’ in1ited tenders 2herein$ one 4SA HB’ )idder

;uoted 8s' $)&(4 as item rate )ut calculateditem amount 8s' %)&(4+

5s per the ambiguity clause$ ;uoted item ratehad precedence o1er the amount 2or3ed out+

'o2e1er$ the 4SA considered 7s+ GD!"8> as unitrate against 1iolation of the tender condition+

Contract 1alue of 8s' %)'1 Cr, 8s'$)&(4 and8s' %1'114 Cr 8s'%)&(4+

Thus$ po2er sector 4SA H5’ a2arded the 2or3at higher rate )y 7s+ G+ Cr+ )y 1iolatingam)iguity clause of tender document+


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Example .+ In another case$ a )id guarantee of 7s+ crore

gi1en )y 9 )idder 2as initially 1alid up to.++GD+

The 9OI 2as issued to this )idder on .+G+GD$after the 1alidity of the )id guarantee 2as o1er+

It 2as only after placement of 9OI$ that the )idguarantee 2as got extended up to -+G+GD+

There 2as no )id guarantee during theinter1ening period from ($'$$'%(() to

(1'$%'%(() during 2hich the case 2as )eingprocessed+

Such situations needs to be discouraged' Separate oicial to o1ersee the E%6 1alidation >

CVC


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E.ecution Stage

Compliance of 5greementConditions

%a3ing 4ayments

Ensuring Juality Timely Completion


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Common o)ser1ation of

CTEO%ain focus remains on 2or3BOJ8Speci*cations

'ence$ other pro1isions get ignored e+g+:

7oyalty$ 7e)ate$ Test charges$ etc+ 6eployment of manpo2er$ machinery$ etc %aterial 7econciliation

6eduction of taxes$ charges$ fees$ ad1ances$

etc+ 4?$ 9a)or licenses$ Safety$ Insurance$ etc+

7esult ?inancial irregularity 2ith8or undue )ene*t to

contractor


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Example +Contract 4ro1ision’s Compliance 5s per contract condition$ in a pro0ect

costing 7s+ " crores$ 2ater for construction2as to )e arranged )y the contractor+

They 2ere also supposed to pay Hroyalty’ forthe surplus earth generated fromexca1ation+

The PS9 /rovided the water and did not

deduct the royalty from the contractor’s)ill+

The contractor 2as unduly )ene*ted )y7s+ D 9acs on this account+


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Example G+ In hydro po2er pro0ect$ it 2as seen that only

)atching plant 2as deployed against Gre;uired+ 'ence$ re;uired ;uantity of concrete2as not produced and the 2or3 got delayed+

Similarly$ in another case$ )atching plant 2asnot installed at all e1en after lapse of "months from the date of start+

5gain$ concrete 2or3 2as )eing executed atsite using 1olumetric method instead of design

mix concrete produced 2ith )atching plant

Thus$ the contractor not only sa1ed money)ut also compromised the ;uality+


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Example .+Interest free ad1ance$ Ser1ice Tax In a po2er pro0ect costing 7s+ GG crores$ "=

interest free ad1ance 2as pro1ided in thecontract agreement+

6nother interest 2ree advance o2 8s' $$crores was allowed to the contractor 2ithoutany contract pro1ision+

5s per the special condition of the contract$ theservice ta. 2as the lia)ility of the contractor

still it was being reimbursed to thecontractor $ causing undue *nancial )ene*t tothe contractor+

Thus$ undue *nancial )ene*t 2as extended

to the contractor+


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Example "+Insurance 4olicies It 2as o)ser1ed that contractor’s are either

not ta3ing 1arious insurance policies at all orta3ing these policies for part period or for

part 1alue of pro0ect+

This not only defeats the 1ery purpose ofstipulating these insurance policies$ )utalso results in undue *nancial gain to the

contractor+

CVO of one 4SA reported the reco1ery of7s+ +" Cr against short insurance in all

the running contracts at the chec3 time+


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Example -+ In one case$ the 9OI 2as issued and the

successful )idder 2as re;uired to furnishperformance guarantee 2ithin #( days of 9OI+

It 2as further stipulated that if the successful

)idder failed to su)mit the C4L in theprescri)ed form 2ithin . calendar days afterdate of 9OI$ then the )id guarantee amount ofthe successful )idder 2ould )e forfeited )y thepurchaser as 96+

The 4BL 2as su)mitted )y the successful)idder after 1% days of issue of 9OI$ no 96 2asimposed

Violation of tender conditions$ )ene*t to

contractor


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Example #+&ai1er of charges$ etc In a particular po2er 4SA$ the ma0or items

2ere re;uired to )e type tested )y the

contractor )efore supplying to the site+

It 2as found that type tests 2ere 2ai1edand as a result$ type test charges$ as;uoted )y the )idder$ 2ere not deducted

from the contractor+Such incidence of 2ai1ing contractconditions may not only ha1e )earing onthe ;uality aspects )ut also ha1e

*nancial )earing+


46/59

4ayment to ContractorsCircular @o+8D8# dated +D+G# Commission has allowed the organizations to

sti/ulate interest 2ree advance 2ith ela)oratemechanism for safeguards against its misuse+

BLs ta3en in lieu of %o)ilization 5d1ance need tobe /ro/erly e.amined 2ithin respect to theaccepta)le format

5ny condition deterrent to the Company’s interestshould )e got 2ithdra2n )efore acceptance

Veri2ying the genuineness o2 the 5B from the)an3ers+

Separate oicer for veriAcation4 timely renewal4timely encashment o2 5Bs to )e designated >CVC


47/59

6uplicate payment 4ayment for the same acti1ity is made under

t2o dierent items should )e a1oided+,Clubbed Contracts/

7eco1eries for statutory taxes8duties 7eco1eries not made as per contract condition+

7eim)ursements: 7eim)ursement of ser1ice tax$ excise duty etc+

done 2ithout o)taining the actual proof ofdepositing the same 2ith authoritiesconcerned+

4ossi)ility of excess reim)ursement+


48/59

4ayments made for 2or3 not done

Escalation paid more than admissi)le Escalation clause’s detailed formula not

applied correctly+ 5r)itrary ad1ance gi1en ins/ite of

escalation clause+

'ire charges not deducted

Company’s machinery used )y thecontractor for speeding up 2or3$ e1enthough there is no pro1ision in the contract+In such cases$ if the hire charges are not

deducted$ contractors get unduly )ene*ted+


49/59

Example + Total exca1ated ;uantity of earth 2as

considered for disposal under extra lead2ithout deducting for )ac3>*ll ;uantity+

Thus$ payment 2as made e1en for the

;uantity not disposed+

This 2as o)ser1ed in the 2or3 of 7CCchimney for a po2er pro0ect+


50/59

Example G+ One organization$ executing the 2or3s 2orth

7s+ " crores 2as reim)ursing the exciseduty to the contractors to the tune of 7s+ Crores 2ithout 1erifying the excise dutychallans+

E1en after the lapse of one and half year$the organization 2as not a)le to su)mitthe reconciled statement of

reim)ursement of excise duty recei1ed )ythe contractor and the actual excise dutypaid )y the contractor+

'ence$ pro)a)le undue )ene*t to supplier


51/59

Example .+ In case of a thermal po2er expansion

pro0ect$ concrete mix 2as designed 2ithparticular cement content$ )ut at the timeof appro1al of deign mix$ the cement

content was increased arbitrarily +Since$ the cement 2as to )e suppliedfree of cost )y the department$ itultimately resulted in infructuous

expenditure to the tune se1eral lacs+

The possi)ility of pilferage of cementcan not )e ruled out+


52/59

Example D+ 5 po2er sector 4SA allo2ed 7s+ D Cr interest

free ad1ance during the 2or3 execution 2ithoutany contract condition on the ground of rise inthe steel prices+

There 2as a speci*c escalation clause for steeland contractor 2as )eing ade;uatelycompensated for rise in the steel prices$ so thisaction 1irtually resulted in undue *nancial)ene*t to the contractor+

If the rate of interest on this extra ad1ancepayment is considered same as on themo)ilization ad1ance stipulated in thecontract agreement$ this undue )ene*t

2ould amount to almost 7s+ " la3hs+


53/59

Example "+ Before a2ard of 2or3$ 9> *rm con*rmed to

/ass on the mega /ro0ect concessions+PCD to the 4SA+ 'o2e1er$ no %4C 2erepassed on to the 4SA+

7ather a proposal 2as in the process forpayment of $1F of the total %4C to the 9>*rm as a fee for the consultant 2ho 2ill )eappointed )y the 9> *rm for a1ailing these%4C+

Before placing the a2ard letter the 4SAcategorically had re0ected the demand of the 9> *rm on this account+

-= of %4C ,7s+ G Crores/ : 7s+ .+G

Crores


54/59

Juality 5s per the contract$ surface cleaning and

preparation on steel structural mem)ers 2asto )e done 2ith 2ire )rushing or mechanicaltools depending upon the condition of surface+

But$ at site surface cleaning8preparation2as )eing done only 2ith 2ire>)rush$2hereas certain structural steel mem)ersneeded cleaning 2ith mechanical tools

)ecause of scaling+The thic3ness of paint o1er structuralsteel mem)ers 2as found less than there;uired+


55/59

Example G+ In a 77 stone masonry drain 2or3 of a

@uclear po2er pro0ect$ bond stones werenot /rovided at all$ 2hich are necessaryfor the sta)ility of the stone 2or3+

Similarly the 0oints in the stone masonry2ere o)ser1ed more than the maximumpermissi)le size of the 0oints$ 2hich is alsoindicati1e of poor ;uality of construction+


56/59

Example .+ In one case$ it 2as found that 2hile

dispatching the material from contractor’sstores$ the items$ 2hich 2ere earlierre0ected$ deformed and rusted$ 2ere mixed

2ith the other items ready for dispatch toerection site+

Such lapses pro1e that super1ision atthe time of execution is not gi1en due

importance )y the 4SA particularly2hen the executing agency is another4SA+


57/59

Time O1errun%any pro0ects ha1e )een unduly delayed dueto contractor’s fault such as non deployment of ade;uate plant ( machinery$

technical sta$

material$ la)or etc+'o2e1er$ no 5ction against the contractor interms of the agreement 2ere ta3en )y the4SAs+

In some pro0ects$ it 2as further o)ser1ed thatHE.tension o2 Time; 2as granted 2ithoutclaiming com/ensation 2or L>$ ignoring allsuch correspondence that implicate the

contractor+


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51aila)ility of Complete7eport CVC &e)site

http:88222+c1c+nic+in8cte)oo3+htm

?ara33a 95@ http:88!+G"D+G+G"81igilance8CTEOStudy+htm


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CVC Study on Power Sector

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