MUMBAI, March 13: The Brihanmumbai Electric Supply and Transport (BEST) undertaking's decision to award a Rs 27-crore contract to Vantage Advertising Limited (VAL) for displaying advertisements on kiosks affixed to street-light poles has come in for severe criticism from the BEST administration.The administration has cited VAL's failure to pay its dues of an earlier contract as the reason for its opposition. However, BEST committee chairman and Shiv Sena leader Arvind Nerkar denied there was any irregularity in awarding the contract.
BEST had invited tenders for display of advertisements on kiosks affixed to street-light poles of BEST and Brihanmumbai Municipal Corporation for a period of three years from March 1, 1998. Offers ranging from Rs 8 crore to Rs 27.27 crore were received from 11 firms. The lowest offer was from Jaya Advertising, and the highest from VAL.
After processing the tenders, the BEST administration submitted, ``The highest offer was from VAL, who had quoted a total amount of Rs27.27 crore, including a guarantee for a minimum number of illuminated kiosks. But their offer for the third consecutive year wasn't considered while putting up the recommendations because it was disproportionately high. Secondly, they had also not given the required bank guarantee against the contract for ads on bus shelters for about one-and-a-half years. There were other minor factors too, such as non-payment of additional rental of Rs 21 lakh, constructing backdrops at some bus shelters, and installing generator sets.''
However, while awarding the contract, the BEST committee ignored these objections and asked VAL's nominee to review the terms and conditions for the Rs 27.27 crore contract. The offer of VAL was then accepted, and it has been asked to pay a monthly rental based on yearly rentals for all poles.
Justifying the decision to award the contract to VAL, Nerkar said: ``Since the highest offer was from VAL, the BEST committee unanimously awarded the contract to it. I feel the BESTadministration should have penalised VAL earlier, when it had not honoured certain conditions vis-a-vis the contract for ads on bus shelters. It shouldn't raise objections about a completely new project,'' Nerkar said.
Nerkar, who had taken the lead in beautifying bus shelters and introducing new buses in Mumbai, observed it would be improper to reject the highest bidder's tender.
``In the bus shelter project, the administration should've imposed a penalty on VAL for delay in furnishing the bank contract as per conditions,'' Nerkar remarked.
The Sena leader admitted VAL had committed certain irregularities while implementing the novel bus shelter project. ``There was opposition to the construction of backdrops. But they were demolished by the BMC,'' he said.
About the objection taken by Trade and Commerce Minister Pramod Navalkar, Nerkar said he had called on him to explain the situation. ``Some residents had brought to Navalkar's notice that thieves and anti-social elements were taking shelterbehind the backdrops. Now most backdrops have been removed,'' he remarked.
Nerkar said on the one hand, there's strong criticism of BEST due to the financial crisis or resource crunch, and on the other, it's being blamed for awarding a contract to the highest bidder. ``If we had not awarded the contract to VAL, we would have lost Rs 9 crore,'' he pointed out.
Replying to a question, Nerkar said it wasn't his personal decision, but the unanimous one of the entire BEST committee, comprising nominees of Shiv Sena, BJP and Congress.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
