Rs 100 crore PDD metering tender stuck in red-tape

By Nisar Dharma

Srinagar, Mar 28: Headed by J&K Deputy Chief Minister, Nirmal Singh, the Power Development Department (PDD) is not serious about implementing the projects vital for improving the erratic transmission and distribution (T&D) system in the state.
In 2017, for instance, the department had asked a company to float the tenders for installation of two lakh smart meters in the state, but it never issued the Letter of Authorisation (LoA) for the project.
As such, the company, REC Power Distribution Company Limited (RECPDCL), cancelled the bid, as the government made it to look for the bidders but never officially authorised it to hire them.
The dillydallying has pushed the over Rs 100-crore project into limbo, while it was aimed at bringing “advance technology interventions” to reduce the huge T&D losses suffered by the state.
It also questions the government’s promises of achieving 100 per cent metering by 2019.
Part of the Rs 80,000-crore Prime Minister Development Package (PMDP), the project, as such, hasn’t moved beyond papers since 2015, when the package was announced by the Prime Minister, Narendra Modi.
The PDD’s Chief Engineer (Projects), Daljeet Singh, referred this reporter to Azhar Waqil, his technical officer, who said the delay happened because “no party came forward when the tender was floated”.
Neither did the officer know the cost of the project nor of the funds received by them.
“The RECPDCL had to implement the project in the state. They floated the tenders in 2017 but hardly got any response,” he said.
An official at RECPDCL, who did not wish to be named, however, refuted this version.
The company, the official told The Kashmir Monitor, had floated the tenders in August 2017.
“The state government told us to go ahead with opening the bid and assured that they will issue the LOA to us. We did it, but the LOA never came. Many bidders were interested in the project, but how could have we hired them without being officially authorised?” the official said.
“It has been more than six months, and the tender stands officially cancelled.”
The work, as per the official, was installing one lakh smart meters each in Kashmir and Jammu regions.
“The JKPDD will undertake significant initiative in improving the extent and quality of metering and ensure 100% consumer metering and deployment of the most modern techniques by FY19…it will facilitate the utility to achieve the targeted AT&C loss level of 25% by FY19 from existing losses of 64%,” reads the tender notice issued in August 2017.
The PDD said the matter was stuck for the cabinet’s nod.
“The cabinet was supposed to approve it, but they haven’t so far. Once they approve it, we will issue the LOA,” the technical officer to PDD CE (projects) said.
The power minister or the concerned Commissioner Secretary, Hirdesh Kumar, was not available for their comments.
The smart meters project is a part of several PMDP projects worth Rs 3491.93 crore for improving the power scenario in the state.
Official documents show that the government of India released Rs 654.7 crore of the sanctioned funds till November 2017.
The state, however, has utilised nothing of the amount released, the documents reveal.
The distribution-strengthening project entailed crucial works including electrification of un-electrified villages, installing new transformers, spreading underground cables, and setting up meter testing labs and separate feeders for agriculture irrigation.
Ask the CE (Projects) JKPDD, he blames “the prevailing circumstances” and “weak response to tenders” and “other problems”.
Sources, however, said that there was more to it than meets the eye.
“The department is facing a lot of bureaucratic pressure when it comes to implementing projects in the valley,” the source said.
“We have seen cases where a bidder came forward but the entire project was shelved at the last minute by the high officials in Jammu. It also resulted in annoying the companies who now are wary of working with the state government.”