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Regular-article-logo Sunday, 11 May 2025

Alert trader shields 5cr of govt - Rs 5 lakh spent to gather evidence against bidders' inflated price

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SANJAY OJHA Published 11.08.07, 12:00 AM

Jamshedpur, Aug. 10: Alertness can help avert any kind of loss. A vigilant businessman from the city saved the government from paying about Rs 5cr extra to two reputed PVC pipe manufacturers. For this, he had also been rewarded.

“I spent more than Rs 5 lakh to collect evidence. Today, I am happy for saving the state’s money. The best thing is that the business community has appreciated my contribution by felicitating me on Traders’ Day at a programme organised by Singhbhum Chamber of Commerce and Industry,” said Shrawan Debuka.

The state water resources department invited tenders last year for supply of PVC pipes from manufacturers having an annual turnover of Rs 250cr and production of 50,000 tonnes per annum. The manufacturer was required to supply 9 lakh metre of pipes for minor lift irrigation projects.

When the tender was opened, the lowest bid was Rs 122 per metre and the tender was awarded to two firms — Supreme Industries Limited and Finolex Industries Limited. The companies supplied the materials, too.

Debuka, who himself is in the business of PVC pipes, filed a case in the court stating that the two companies quoted almost double the market price. He also pointed out that the same company had supplied the same PVC pipes to Simdega district administration for Rs 72 per metre. But that was also higher than the prevalent market price of Rs 60 per metre.

“Both the companies enjoy good rapport with the irrigation department officials. I informed the court that the dimension of the required pipe was less than 110mm and according to the Union and state government policies, small scale units can manufacture and supply these pipes,” said Debuka.

“After going through the provisions for small scale industries, the court passed the order in my favour. The court directed the water resources department not to pay more than Rs 72 per metre to the suppliers. The government was saved from paying about Rs 5cr extra,” said Debuka.

He pointed out that more could have been saved had the irrigation department and the Simdega administration officials taken care while placing the order for supply of pipes.

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