No feasibility research for PBS Panchkula, personal agency given unique rights over advert income from 8 docks

Even although the Haryana Public Works Department (PWD) Code states {that a} feasibility research have to be carried out earlier than a public-private partnership, the Panchkula Municipal Corporation had failed to hold out the identical forward of finalising its partnership with Yaana Private Limited for the Public Bicycle Sharing venture, which commenced in 2019. Now, burning a gap within the civic physique’s pockets, the personal agency fees Rs 1,520 monthly per bicycle for the upkeep of a complete of 200 bicycles at 20 docks.
Under the venture, which was inaugurated on August 21, 2019 by CM Khattar, the civic physique paid a complete of Rs 2.09 crore to the agency, together with capital value and upkeep fees for 3 years. Despite constructing the docks for cycles, the Panchkula MC paid Rs 1.09 crore as capital value to the personal agency.
While the execution of infrastructure tasks by public-private participation (PPP) is normally geared toward decreasing the burden on state assets, for which a preliminary report or a feasibility research is carried out to find out if the venture is technically possible and passes the traditional cost-benefit evaluation, sources within the MCP affirm that no such research was undertaken.
“The project was rushed to make the docks functional before the 2019 elections. The docks were set up at urban areas. The total cost of the project was split into capital cost and operating cost which was to be paid later—as works under Rs 1 crore can be approved by MC Commissioner even without the nod from other higher authorities,” mentioned an authorities official aware of the matter, requesting anonymity.
It was in July 2018 that requests for proposals (RFP) for partaking an company for set up and operation of Public Bicycle Sharing System (PBS) in Panchkula with 200 cycles at 20 stations was floated. Tenders for the work have been invited in August 2018, however no RFP was obtained. Thereafter, the tenders have been re-invited in November 2018, following which Yaana Private Limited had submitted its bid.
As per paperwork accessed by the Indian Express, the agency had quoted Rs 1 crore as capital value and Rs 1,600 per cycle monthly as working value. After negotiations, the working value was revised to Rs 1,520 monthly per cycle, with the capital value remaining unchanged.
The work order was then issued to the company in March 2019, for a complete contract worth of Rs 2.09 crore. In addition to the above, the personal firm was additionally given entitlement to commercial income, income earned from the sale of membership, revenue earned from cycle rental and from conducting an annual cycle occasion. The civic physique additionally supplied for the flooring on the station. All this, with none estimate, value evaluation, feasibility research and with out deliberating on the monetary viability of the venture.
As per the contract, the venture if prolonged after its present time interval of three years- ending in August 2022, will once more require negotiations to finalise the upkeep value per cycle monthly, nevertheless, no capital value might be charged.
Exclusive rights of 8 docks’ advert income given to pvt agency
Further, giving disproportionate advantages to the personal agency, the Panchkula MC has entitled the agency to eight of the 20 docks’ commercial income, as an alternative of sharing the full revenue from the 20 docks in a 60-40 ratio.
As per the PWD Code, the personal agency is chargeable for the promoting commercial area on the system and the income earned is to be shared between the Municipal Corporation of Panchkula and the personal agency in 60-40 ratio. However, beneath the venture, the 20 cycle stations have been divided within the ratio of 60-40 (12 to MCP and eight to the agency) for commercial income sharing in a draw held in August 2019.
On queries relating to the problems, MC Panchkula Commissioner RK Singh mentioned, “I was not in the corporation at the time when the public-private-partnership deal was struck. I will have to go through the files to look into the matter.”
UT MC to cost Rs 12 lakh from pvt agency for similar venture
While Panchkula MC has paid a complete of Rs 2.09 crore to a personal agency for working the 20 biking docks constructed by the civic physique itself, Chandigarh civic body- implementing the identical venture at a a lot wider scale, with 25 docks already practical, will yearly cost Rs 12 lakh from the personal agency concerned in working the enterprise. The docks within the UT are additionally being constructed at the price of the personal firm.