Why invisible ?
Because it is cleverly camouflaged in the " Terms
of Contract " that companies sign with Central Government / State
Governments / Municipal Corporations / umpteen Government Agencies
This invisible corruption is rampant in Infrastructure
Projects that get spread over months / years
And every possible trick / excuse ( officially called
" Reasons " ) is used to ensure that these Projects get delayed as
much as possible !
Examine carefully and you will find that the more a Project
gets delayed , the more that Contractor
stands to gain ! Anyone believing otherwise , has got to be naive !
How ?
These contracts contain " Cost Escalation Clauses
" which decide the extra / additional amounts payable to the Contractor ,
over and above the ( so called ) " Fixed Price " quoted at the time
of tendering
Under these clauses , the Contractor is eligible to
claim / demand extra payments , whenever
* SOMETHING HAPPENS
- costs of
certain " Inputs " go up above a certain agreed level , eg :
# Prices of Raw Materials
# Prices of Water / Gas / Electricity
# Cost of Labor
# Foreign Exchange Rate
# Consumer Price Index
# Interest Rate
If any of
these go up above certain agreed levels , the quoted price to go up by X/Y/Z
amount , as per the Formula which determines the % age contribution of these
elements , in the quoted price
* SOMETHING DOES
NOT HAPPEN
# Environment Clearance for the Project
# Land acquisition and Handover to Contractor
# Hundreds
of permissions from dozens of Govt Depts/Muni Corporations
# Issue of Import Licenses
# Release of Foreign Exchange
# Issue of NOC from umpteen departments
# Issue of Compliance Certificates from various
departments
# Approval of Designs / Design Change Requests
( from Govt as well )
If any of these are NOT issued / given by certain
" Dates " ( very easily
managed ! ) , then the quoted price to go up by X / Y /
Z amount
Invariably , these clauses are heavily tilted in favor of the Contractor
And equally invariably , colluding Government officers
/ bureaucrats / politicians , responsible for drafting / approving these "
Clauses " , leave them vague !
This is apart from framing the Tender Specifications in
such a manner that only a certain preferred bidder will qualify !
If you doubt what I have said , then just file a RTI
application , asking for a copy of,
* Original
Tender Document
* Final Contract
* Number of
Price Revision Requests received / granted
for any project of your choice !
If Narendra Modi is keen to reduce corruption , he
should start by instituting MODEL INFRASTRUCTURE
PROJECT CONTRACT , which clearly
spells out what price / time revisions can be granted and when
At the same time , internally , there must be a
provision for DEMOTION / PENALTY for those officers who fail to give
permissions / approvals / NOC etc, on specified dates ( milestones for the
project )
* hemen parekh
( 07 July
2014 / Mumbai
)
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