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8.4.10

Objection * India - Delhi govt paid higher rates to procure low-floor buses

New Delhi,India -DNA -April 1, 2010: -- Delhi government today came under attack from the Comptroller and Auditor General (CAG) for paying Tata Motors a higher rate for procuring low-floor buses which may not be suitable for some of the city roads... During 2004-09, the DTC purchased 3,156 AC and non AC low floor buses to cover a large area comprising rural and suburban regions, the CAG said that making a homogeneous bus fleet would not only increase the cost of operations... In its report for the year ending March 2009, the CAG pointed out about the procurement order for 1,500 non-AC and 1,000 AC low floor buses in September 2008 and said the vehicles were purchased at "rates over and above the justified rate" prescribed by a technical committee of the corporation... It said the offer of Tata Motors was lowest with the bid price of Rs55.20 lakh for a non-AC bus and Rs64.19 lakh for an AC bus. But the technical committee of the DTC had, however, worked out a justified price of Rs42.92 lakh for non-AC bus and Rs50.56 lakh for AC bus... After negotiations the government directed the corporation to procure the non-AC bus and AC buses at Rs51.89 lakh and Rs61.62 lakh respectively...

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