Buses that never were cost DTC Rs 12 lakh

NEW DELHI: An unplanned decision to buy urban buses cost Delhi Transport Corporation Rs 12 lakh. The buses were never bought but the consultant was paid the whole amount.
This is one of the many examples cited by the Delhi government report on government undertakings and the wasteful expenditure incurred by them. In its expose, the panel has criticised the corporation on unplanned purchases and its alleged selection of suppliers offering goods and services at a higher price.
In this particular case, the Corporation prepared a business plan to buy 1,500 urban buses between 1997 and 2002.‘‘But there was no technical and economic evaluation of their feasibility,’’ a committee member said.
Having made up its mind, the DTC even hired a consultant for preparation and piloting of the 1,500 buses.
‘‘The Rail India Technical and Economic Services Limited (RITES) was hired as a consultant at Rs 16 lakh fees to prepare the tender for design, manufacture, supply, testing and commissioning of these buses,’’ the member said.
But when the proposal was sent for the approval of the state government in July 1998, it was returned with the instructions to send a technical and economic feasibility report. This was done in view of a very high quoted price of Rs 29.75 lakh, and undefined operating conditions.
The DTC, thereafter, kept the proposal in abeyance and discontinued the services of RITES. ‘‘However, payment of Rs 12 lakh was made to RITES, which was infructuous. It could have been avoided if the DTC had got the business plan approved by the state government and prepared the techno-economic feasibility report earlier,’’ the report said.
The government panel had been informed that the proposal had been resubmitted to the government after clearing the objections, but in the meantime, the Supreme Court enforced a ban on diesel buses and therefore, the proposal was shelved.
‘‘This is another reflection on the working of the corporation where due to lack of planning and coordination with the government, the DTC wasted Rs 12 lakh,’’ the report concluded.