Smart Prepaid Metering: Central Discom Cancels Old Tender, Floats Fresh After Government Intervenes

Bhopal (Madhya Pradesh): After the state government intervened, the Madhya Pradesh Central Zone Electricity Distribution Company Limited floated a fresh tender for smart prepaid metering of Bhopal city.

The central power distribution company (discom) was mulling over handing over the work of smart prepaid metering of the state capital to L2 Company (second lowest bidder) after the project awarded to L1 (first lowest bidder) was rejected over the alleged fake guarantee papers.

However after the government intervened, the central discom cancelled the previously awarded tender and floated fresh tender for smart prepaid metering on Design Build Finance Own Operate Transfer (DBFOOT) basis. 

Its approximate value is Rs 1213.52 crore. The value of previous tender was around Rs 900 crore, discom officials said.   The new tender will be opened on August 23.

Sources said that the government received a complaint that the discom was allegedly trying to give the work of L 1 company to L 2 company that also at the rates of L 2 company.

Technically, the work should have been awarded at L 1 company rate itself. “The difference between the prices of both L 1 company and L 2 company was around Rs 50 crore,” said an official of the Electricity Department.

A German agency is funding the smart metering project of Bhopal. The discom officers said that L1 company allegedly submitted a fake bank guarantee and when the matter came to fore, an FIR was filed against the L1 company and the project awarded to it was cancelled.

Later the discom started mulling over the option to award the L1 company work to L2 company that also at the rates of L2 company.

“The cancellation of the tender brings extra financial burden as the price gets increased in comparison to previous tender. Apart from this, the time of at least four to six months is taken to bring all things on line,” said an official who is one of the Board Members of the discom.