BJP MP's company got Rs 1,350cr dam deals illegally

October 1, 2012
Ajay-Sancheti

Mumbai, October 1: A non-existing company owned by BJP Rajya Sabha MP Ajay Sancheti bagged irrigation projects worth Rs 1,350 crore in Maharashtra in 2007-08.

The firm, Shakti Kumar M Sancheti Ltd, was renamed SMS Infrastructure in November 2005. Yet, Sancheti was awarded contracts by the Vidarbha Irrigation Development Corporation (VIDC) under the name of the old company. "Once the name of a company is changed, the old name ceases to exist and the new name comes into existence. The Sancheti group used the old name as well as the new name concurrently to obtain more contracts than permitted,'' said officials. Government sources said VIDC's norms permitted a maximum of three contracts to a single contractor. Its tender condition clearly stipulated that in case of violation, the contractor would be blacklisted.

Sancheti is a close aide of BJP president Nitin Gadkari and his family has RSS links for the last three generations. His uncle, Chainsukh Sancheti, is the BJP MLA from Buldhana district.

Documents accessed by TOI reveal that the now defunct firm (Shakti Kumar) went on to bag four contracts; two in Gosikhurd in Bhandara district, one in Amravati district and another in Yavatmal district collectively worth Rs 1,350 crore. (VIDC later cancelled one of the tenders because it was awarded at an exorbitant rate.)

Simultaneously, SMS Infrastructure also procured projects worth an additional Rs 389 crore between 2006 and 2009.

Sancheti was not available for comment despite several attempts to contact him.

MPs protest 250% dam cost escalation

In November 2011, two MPs wrote to Union water resources minister Pawan Kumar Bansal about the unusual increase in the cost of the Purna barrage-2 (Ner Dhamana) irrigation project. The work was awarded to Sancheti. BJP's Haribhau Jawale and Shiv Sena's Nandrao Adul complained that its cost had shot up from Rs 182 crore to Rs 638 crore. "The design finalization was done way ahead after the tender was awarded. This resulted in excess expenditure by more than three times,'' said Jawale's letter. He further said that the original 2008 administrative approval was obtained without following due procedure. "If tender had been awarded post-finalization of design, it would have saved a lot of money and resources. As a result, cost of irrigating the land is estimated at Rs 9.19 lakh a hectare whereas the normal cost is around Rs 2 lakh a hectare,'' he added. The Centre had imposed a condition that the project be completed within the sanctioned amount. "However, reality seems to be far different as the project cost is revised drastically. Definitely, there seems to major manipulation causing undue benefit to certain vested interests,'' said Jawale. He urged the minister not to sanction the revised estimate as it was an "unrealistic'' one.


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April 11,2020

New Delhi, Apr 11: Ahead of Prime Minister Narendra Modi's meeting with chief ministers, senior Congress leader P Chidambaram on Saturday urged CMs of states where the party is in power to unanimously demand for transfer of cash to every poor family.

He said the poor have lost their jobs and have exhausted their savings. They are now standing in lines to get free food, the former Union finance minister said.

Chidambaram said remonetising the poor would cost only Rs 65,000 crore, which is economically viable.

"Chief ministers Amarinder Singh, Ashok Gehlot, Bhupesh Baghel, V Narayanasami, Uddhav Thackeray and E Palaniswani should tell the prime minister today that just as LIVES are important LIVELIHOOD of the poor is important, he tweeted.

"The poor have lost their jobs or self-employment in the last 18 days. They have exhausted their meagre savings. Many are standing in line for food," Chidambaram said.

Can the state stand by and watch them go hungry," he asked, adding that chief ministers should demand that cash be transferred to every poor family immediately.

"Remonetise the poor should be their unanimous demand," Chidambaram said.

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News Network
January 31,2020

New Delhi, Jan 31: Substantial competition and low tariff rates by telecom operators since 2016 have led to a financial stress in the sector, the Economic Survey said on Friday.

The data price in the country came down by over 99 per cent during 2016-2019, making it among the lowest tariff in the world, according to the survey.

"Since 2016, the sector has witnessed substantial competition and price cutting by the telecom service providers (TSPs), creating financial stress in the sector. As a result, the sector is experiencing consolidation. While some operators have filed for bankruptcy, others have merged, in their quest to improve viability," the survey report said.

In April-June 2019, the price of data was Rs 7.7 per gigabyte (GB) as compared to Rs 200 per GB in June 2016, it added.

"The Average Revenue Per User (ARPU) for GSM based mobile services has also gone down substantially from Rs 126 in June 2016 to Rs 74.30 in June 2019," the survey said.

The tariff war started in the market with entry of new telecom operator Reliance Jio in September 2016.

"BSNL and MTNL are also affected by the tariff war that has impacted their cash flow resulting in mounting losses," the survey said.

The financial health of the public sector telecom firms plummeted to a level where they have been finding hard to pay employees salaries in time.

The government has drawn up a plan to revive these PSUs which is still in works.

The revival plan consists of several measures, including reduction of staff cost through voluntary retirement scheme, allotment of spectrum for 4G services, monetisation of land and building, tower and fibre assets of BSNL and MTNL, debt restructuring through sovereign guarantee bonds and ''in-principle'' approval for merger of BSNL and MTNL.

The survey said that the wireless telephony now constitutes 98.27 per cent of all subscriptions whereas share of landline telephones now stands at only 1.73 per cent where market share is dominated by private sector players.

"The overall tele-density in India stands at 90.45 per cent, the rural tele-density being 57.35 per cent and urban teledensity being 160.71 per cent at the end of September 2019. The private sector dominates with a share of 88.81 per cent (106.06 crore connections) at the end of September, 2019 while the share of public sector was 11.19 per cent (13.36 crore connections)," the survey said.

The lower price of data has also lead in surge of broadband connections and average consumption of the internet.

Total broadband connections increased by about ten times, from 6.1 crore in 2014 to 59.46 crore in June 2019, the survey said.

The number of internet subscribers (both broadband and narrowband put together) stood at 66.53 crore at the end of June 2019 as compared to 25.16 crore in 2014.

The number of mobile internet subscribers was 64.36 lakh at the end of June 2019 while the number of wireline internet subscribers was 2.17 crore.

"India is now the global leader in monthly data consumption, with average consumption per subscriber per month increasing 157 times from 62 MB in 2014 to 9.8 GB in June 2019. The cost of data has also reduced substantially, enabling affordable internet access for millions of citizens," the survey said.

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