Meghalaya Energy Corporation Ltd (MeECL) insiders are unhappy over a number of issues regarding the smart meter project that the Power Department has recently begun, not least because Satnam Global, a Delhi-based firm, was the lone bidder for the Rs 263.24 crore project to supply and install the meters.
The government said that the smart meters, funded by the Asian Development Bank (ADB), are to make the power company’s billing system more efficient, but the process of awarding the contract has left a trail of heartburn all round, while the alleged high pricing has raised protests among people including pressure groups.
In July 2020 there were four bidders, including Satnam Global, but the bids of the other three were found wanting.
The board of directors of the Meghalaya Power Distribution Corporation Limited (MePDCL) met in September and approved the opening of the single price bid subject to approval of the ADB. When opened it was found that Satnam’s quoted price was Rs 206.68 crore, inclusive of provisional sum. But the bidder had quoted as per the requirements floated in May 2020 instead of the revised one from June 2020.
This opened up a long process of complicated negotiations during which time MePDCL directors raised several issues about the cost of the project, which was 15 per cent above the original estimated cost as well as the fact that the Satnam had quoted for the wrong tender.
Sources also said that the MePDCL had been trying to get the MeECL board to look into an alternative from a central public sector undertaking (CPSU) that had shown interest to invest 50 per cent of the project cost among other things.
Sources said that there was deep dissatisfaction among some of the insiders that the contract had been handed over to single bidder without any competitive bidding. The single bid cast a severe burden of loans on the MePDCL, which is already overburdened and in a financial crisis, insiders said.
Sources said that one of the independent directors on the MeECL board had resigned during this time, but whether the resignation was due to these issues is not known. At the same time, the director of finance, an IAS official, also resigned. This crucial post was then taken over by the Chairman and Managing Director (CMD) of the MeECL.
The controversy only deepened further with the official statement confirming that smart meters cost Rs 3,000-3,400 per unit, according to Power Minister James Sangma’s replies in the Assembly, whereas the price Satnam Global is quoting is Rs 9444.44 per unit.
It may be mentioned, that the Satnam Global was awarded the contract for the implementation of Saubhagya Scheme (Package A) in Meghalaya. The rate approved for the company to supply materials under the Saubhagya Scheme was more than 100 per cent over and above the MeECL approved rates or the market rates. The entire contract was for Rs. 255, 59, 98,239.11 only in Khasi Hills, Jaiñtia Hills and Ri Bhoi districts.
