Left puts a spanner in BIAL works

Committee seeks probe into delays
Deccan Herald

A parliamentary standing committee has sought an inquiry by an independent agency into the issue of awarding work contracts by the Bangalore International Airport Limited (BIAL). The standing committee on transport, tourism and culture in its report on “development of the airport sector with emphasis on new modern airports”, said it was of the view that “there was complete lack of transparency” in awarding of engineering, procurement and construction (EPC) contracts at the BIAL.

The report, which was tabled in Parliament on Tuesday, said it brought to the notice of the civil aviation ministry the reports of private investors in the BIAL bagging the contract for construction and installation of the complete electric system without any competitive bidding.

“The replies of the government were evasive and highly unsatisfactory,” the committee chaired by CPM’s Nilotpal Basu said even as it noted that the role of the Union government on the board of BIAL was not above board. The ministry was aware that as per the provisions of the concession agreement of BIAL the promoters themselves would be participants in executing contracts, it added.

“Since the equity holders are themselves service providers in BIAL, there is certainly a case for conflict of interests,” it said. Highlighting that it had expressed apprehensions on the issue during the oral evidence in November, 2004, it noted that at the time the ministry had not accepted the observations of the committee. The ministry emphasised that there was going to be open tendering.

“Now the apprehensions of the committee have come true. The committee is of the view that there was complete lack of transparency in the awarding of EPC contracts at BIAL…”, the report added.