In Ahmedabad, the Municipal Street Light Department is facing serious allegations of corruption related to a major tender. Discussions around these allegations have gained momentum following the approval of the SITC tender, which is estimated to reach ₹500 crore. This tender involves the maintenance of street lights across different zones in the city.
Currently, the contract for maintenance was held by the Citelum company. However, since the contract ended, no new company has yet been appointed. The SITC tenders for each zone have become a focal point for controversy, with claims of significant corruption surfacing. Despite the contracts being awarded recently, there are preparations underway to announce a new tender worth ₹500 crore for the street light department.
There are allegations that a huge scam might be unfolding behind the approval of the SITC tender, with estimates of the corrupt dealings amounting to around ₹30 lakh. However, there is no solid evidence to support these claims, leading some to believe they are mere rumors.
The municipal street light department has issued tenders three times for maintenance yet has not assigned the work to any company. Previous tenders for supply and testing were canceled due to high pricing and collusion among contractors. Following the transfer of the deputy commissioner of the light department, new tenders were issued. It is reported that contracts were awarded to companies that had previously been accused of forming a syndicate. Notably, two companies, Radadiya Paresh and Volker, have entered the scene for the first time.
In the municipal building, there are discussions suggesting that corruption occurred during the signing off on the SITC tender files. The tenders were prepared based on market prices, leading to bids that were reportedly 30% higher than the market rate. The street light department has typically created tenders aligning with standard operating rates for supply, installation, and testing.
However, officials from Gandhinagar reportedly cancelled previous tenders and insisted on new tenders being prepared according to their preferences. Contracts worth ₹7 crore each have been approved for various companies across different zones.
The upcoming contract for street light maintenance is projected at ₹190 crore over five years, but no company has been awarded the work yet. Annual SITC contracts are typically issued with price limits, and new contracts are announced once previous ones are completed. Now, there is a proposal from a senior official in Gandhinagar to combine the street light maintenance contract with the SITC into a single tender, estimated to be worth ₹500 crore. This would mean that new companies would only be awarded contracts after the current ones are completed.
While this approach may be beneficial for the officials, it is believed to ultimately harm citizens as it limits competition and may lead to higher costs for street light maintenance. The controversy surrounding these tenders continues to unfold, raising questions about transparency and accountability within the Ahmedabad Municipal Corporation’s operations.