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Irregularities in coal transportation for Sudha dairies

An internal inquiry conducted by animal and fisheries resources department has exposed large-scale financial and procedural irregularities in transportation of coal for different Sudha dairies in Bihar and Jharkhand.

The on-the-spot inquiry conducted at Muzaffarpur dairy (in Bihar), Bokaro dairy, Jamshedpur dairy, Ranchi dairy and Ranchi fodder plant (all in Jharkhand) on different dates by the director, dairy development (Bihar government) Anil Kumar Singh, has revealed that selection of contractor for transportation of coal was done without tender process in violation of Bihar Financial Rules. A contractor, Nawal Kishor Singh of Ramgarh (Jharkhand), was engaged by almost all dairies either through the process of nomination or limited tender.

Interestingly, the rate of coal transportation was hiked and the period of contract extended time and again, in most cases three times, by different dairies on the request of the same contractor.

"Each unit/dairy has spent an average Rs 10 to 20 lakh per annum on transportation of coal, while average consumption of coal in each dairy ranges from 50 to 120 tonnes per month. Muzaffarpur dairy has maximum average coal consumption of 100-120 tonnes per month," the inquiry report submitted to Bihar government discloses.

The eight-page report says, "At Bokaro dairy, which has an average coal consumption of 48 to 50 tonnes per month, contractor Nawal submitted an application on March 27, 2010, requesting for allotment of coal transportation work on the plea that he had already been doing the same work for Jamshedpur dairy. He demanded work on the rate approved by Jamshedpur dairy and the local purchase committee (LPC) issued him work order on May 5, 2010, at the rate of Rs 900 per tonne, without inviting tender."

"The rate of transportation was hiked up to Rs 1,025 per tonne and period of contract was extended time and again (up to February 2014) at the request of the contractor. It is a case of serious financial irregularities," the report said. The Ranchi Feed Plant also engaged Nawal on the basis of rate of other dairy without inviting tender.

Serious irregularities have also been found in selection of contractor by Muzaffarpur dairy and Jamshedpur dairy where the same transporter was selected through the process of limited tender, the report said.

"The actual loss of public money can be ascertained only if the government orders a fresh inquiry into the coal transportation. The present inquiry has focused on procedural lapses," a department official said.

Sources said, the animal and fisheries department's principal secretary Subhash Sharma, while forwarding the inquiry report to Bihar State Milk Co-Operative Federation Limited (Comfed), has asked its managing director Harjot Kaur to take stern action against the dairy officers who violated rules to favour a particular contractor. However, Kaur is yet to send her action taken report to the government.

Source: The Times of India