Govt faces solar contracts heat

The decision of the social justice department to award a contract worth `11 crore for fitting solar water heaters in government hostels without inviting tenders has drawn the ire of the Opposition as well as MLCs from ruling parties.
The MLCs have demanded an investigation into the matter. When social justice minister Shivajirao Moghe sought time to gather information on the alleged scam, the chairman of the House kept the question pending in the proceedings.
The social justice department had given a contract to MS Rashmi Industries from Bengaluru to install 1,149 solar water heaters in 264 government hostels for scheduled caste students. The total cost of the contract was `11,26,02,000. However, no tender was invited for the contract, and it was awarded to Rashmi Industries by issuing a government resolution as the company is listed in the Central government’s rate contract.
BJP MLC Ranjit Patil and others on Monday raised the issue in the question hour seeking an explanation from the government as to why no action was taken against Rashmi Industries, despite the company failing to complete the work of installation of solar water heaters.
In his reply, Mr Moghe said, “The company has supplied 733 water heaters, out of which 712 machines have been installed. The government has made a payment of `5,88,49,026 towards 710 water heaters. 21 water heaters have not been installed due to the lack of space.”
Mr Moghe also informed that the company was issued a show cause notice on September 30 last year for failing to supply the remaining water heaters. “But the company had informed the government from time to time about the difficulties they were facing and got extensions from the government. Now, after issuing the notice, a new time frame has been set,” he said.
When senior BJP legislator Pandurang Phundkar asked as to why the contract was given without inviting tenders, the minister said that the contract was given as per the Central government’s rate contract. The legislators were not satisfied with the minister’s reply. NCP legislator Prakash Binsale said that the contract worth `11 crore cannot be given without inviting tenders. Opposition leader Vinod Tawde demanded an investigation into the matter.

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