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GHMC to do away with nominated contracts

Posted by on August 14, 2011 0 Comment

After awarding works worth several crores on nomination basis in the Greater Hyderabad Municipal Corporation limits, especially in the South Zone in the last one-and-half years, GHMC commissioner M T Krishna Babu is now thinking of cancelling contracts on which work have not yet begun.

The GHMC commissioner has also reportedly asked for a report from the zonal commissioner of the South Zone on works that have been awarded on nomination basis, works that have been grounded so far and works that are yet to begin.

Over Rs 50 crore worth works were given on nomination basis to contractors recommended mainly by the corporators and MLAs from the Old City, in the last one year, sources said. In Division 2, for instance, the executive engineer gave over Rs 15 crore worth works on nomination. The GHMC commissioner has now sought an explanation from executive engineer Hafeez Khan for the same.

“Reports on the ongoing works and those that are yet to commence are being prepared. A decision will then be taken on whether to go for tender or short tenders,” GHMC zonal commissioner (South Zone) L Vandan Kumar told STOI.

Most of the works were sanctioned without the tender process when Balasubramanya Reddy and Siraj-ur-Rahman were zonal commissioners due to pressure from people’s representatives. A zonal commissioner, Chandrasekhara Reddy, was even shunted out for refusing to assign works on nomination basis.

There are four divisions (Division 1 to 3 and Rajendra Nagar) in the south zone, which comprises the entire Old City. Out of this, Division 2 — where most of the nominated contract works are — covers Begum Bazaar, Bahadurpura, Charminar and areas between Charminar and Chandrayangutta.

Many such works have also been allotted in areas like Riyasatnagar, Dabeerpura, Santoshnagar in Divisions 1 & 3 of the south zone.

Zonal commissioners have powers to award works to individual contractors up to Rs one lakh on nomination basis for various developmental works like laying roads, construction of compound walls and sewer lines without following any tender process.

But nomination facility should be extended for the works which need to be taken up immediately as tender process takes some time. For works above Rs five lakh, the GHMC commissioner has powers to go for nominated contracts. Some societies belonging to SC/ST communities can be given works on nomination basis up to Rs 2.5 lakh.

But GHMC corporators have been demanding the sanction of more works without calling for tenders as they would ‘benefit’ by awarding them to the person of their choice. Sources said several works worth between Rs 10 lakh and Rs 20 lakh were split and given on nomination basis during the tenure of the two zonal commissioners.

The corporators of other zones too have been demanding works to be handed out on nomination basis. They had even questioned zonal commissioners for not giving works on nomination during GHMC standing committee meetings. TOI

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