MIDC man favours 'Made in China'

Pump manufacturer Kirloskar Brothers Ltd has accused an executive engineer of Maharashtra Industrial and Development Cooperation (MIDC) for favouring a Chinese firm in allotment of contractors despite it matching the requirements and design of the contract.

In a letter to Maharashtra state additional chief secretary (industries), the Indian firm alleged that executive engineer Prakash Chavan favoured the Chinese firm several times in MIDC projects totalling Rs 20 crore.

The letter, a copy of which is with DNA, says that the engineer has rejected Kirloskar's bids frequently, even though it matched the foreign firm's brand quality, design and requirement of the tender documents. The letter says Chavan has favoured the Chinese brand on multiple occasions despite Prime Minister Narendra Modi promoting 'Make In India' and the Maharashtra government launching the 'Magnetic Maharashtra' initiative.

"Indian firms have not given the priority even though they have all the quality and configurations and even match the demands of the MIDC in replacement of valves in various projects of MIDC in Pen and Alibaug region (sic)," stated in the letter.

The letter says that if the contract was given to the Indian brand, then it could have generated employment and foreign exchange savings. It alleged that on the pretext of approval, testing and inspections, Chavan and his coterie made several foreign tours as well.

"We demand fair play and probe into all these contracts," said a Kirloskar Brothers official.

A person close to the development said that the executive engineer has different tactics to approve any specific tender to his favoured firm.

"Chavan used to ask his favoured firm they should not mention the amount they are quoting while participating in the bidding process. The contract is always given to the lowest one. But Chavan's favoured firm used to leave the column of cost blank. While opening the bidding documents in the meeting under his authority, Chavan himself used to open the sealed bid documents. As part of fairness, he used to open the other firm documents and read out their quoted price. The bid of the firm of his choice was opened last."

So he used to come to know who has quoted what amount. In the end, without showing these particular documents, he used to open the document of his favoured firm and announce the lowest price and declared the contract to this specific firm in a fraudulent way."

"While signing this final allotment paper, Chavan himself used to write the amount of the firm. The officers who are part of the meeting either were managed or not shown the final papers," said an MIDC source on the condition of anonymity.

When contacted, Chavan said the internal MIDC office politics has resulted in all these allegations against him. "I do not want to speak much over these issues."

A person from Kirloskar Brothers told DNA that they export their equipment to many countries like the US and Britain and many parts of Europe. "But unfortunately our own government agencies reject our branded equipment and give priority to the Chinese equipment. This has been done to suit a specific outside firm. We had registered our official complaints and met the concerned people in government also. We have also orally complained against the MIDC executive engineer and mala fide practices. In Chinese products, maintenance is a major issue. Besides, we lose the revenue over foreign exchange and deprive our country's firms and its brand," he said.