THE
LIGHT OF ANDAMANS | VOL 36 | ISSUE 01 | 01 OCT 2012
Planning Commission: Sidelined!
The most ardent critic of the
procedures adopted in the Yacht Marina Project at Viper Island
has been the Planning Commission. In the EFC meeting held on 25 Feb 2010,
Gajendera Haldea, Principal Advisor vigorously opposed the project and reiterated
that "the state of development of tourism in the Islands had not been a
success story, with most of the activities being taken up and monitored under
state control." He also raised apprehension that if the intention is to
provide parking facilities for the yachts like in Phuket etc, it should not be
a welcome idea.
He also insisted on an
integrated plan for the Viper
Island before commencing
the Yacht Marina Project or the proposal would lead to sub-optimal use of the
prime public property. It seems that the Planning Commission had been fed that Viper Island
is one of the most suitable location for tourism in A and N
Islands . It also raised objection about the bidding process being
followed.
He also suggested that the
hotel component should be taken out of the PPP mode and only Marina to be taken
up for which Planning Commission had approved 50% subsidy i.e. Rs 7.5 crores.
However, the Committee, it seems overlooked the views of Planning Commission
and recommended the proposal to invite financial bids by issuing RFP for the
Yacht Marina Project.
Piqued by the outcome of the
meeting, an Office Memorandum was sent the very next day by Planning Commission
raking up its apprehensions. It only agreed that whatever approval has been
accorded are all with "in principle" approval and final approval can
be given only after looking into the mandatory guidelines.
It objected that the hotel
component should be delinked from the Marina Project, if the fund provided by
Planning Commission has to be used.
It also raised objection that
the value of the project was shown below Rs 100 crores and is being used as an
argument for not applying the PPP related rules, procedures and documents. It
alleged that the value of the land and waterfront is being excluded from this
computation.
On 26 May 2010, once again
Planning Commission shot another Office Memorandum pointing out that ANI Admn
has not followed the two-stage bidding process mandated by the Ministry of
Finance. It also alleged that the RFP procedure as recommended by EFC was also
not used. On 15 June 2010, once again it consistently noted that overlooking
the mandatory procedure could lead to sub-optimal outcome, besides inviting
objections from CAG and CVC. On 17 June 2010, it kept warning that ANI Admn,
which is governed by the financial/procurement rules issued by the Ministry of
Finance requires to follow the procedures and any violation or departure from
these rules would require competent approvals based on adequate justification.
It also questioned why only in this particular instance, such significant
departures are undertaken.
However, setting aside all
objections, Ministry of Finance on 23 July 2010 observed that the bidding
process was found acceptable and fully consistent with the requirement of
objectivity and transparency.
The incessant criticism from
Planning Commission and the abruptly ended objections raise many questions
about the way the whole issue was tackled. The Chief Secretary had tried to
convince PC that an integrated project for Viper Island
is on the anvil and a consultant appointed. In fact, Mahindra Consultancy was
hired for a cost of Rs 33 Lakhs. However the outcome remains a mystery.
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