State cancels contracts worth ₹826 cr awarded during AG rule

Patna: The state government has canceled 350 contracts worth Rs 826 crore, which were awarded for supply of drinking water to rural areas when the Grand Alliance was in power. The decision to cancel the contracts was taken after an investigation by the Public Health Engineering Department (PHED) revealed “irregularities” in the contractor selection process. Lalit Yadav of the RJD was then the PHED minister. “Around 350 contracts awarded under the Grand Alliance regime were canceled due to various reasons, including irregularities in the selection process of contractors,” PHED Minister Niraj Kumar Singh told TOI over phone on Tuesday, adding a new call for tenders will be launched for the drinking water supply system. The minister said contracts awarded under the Grand Alliance regime were being canceled one by one. According to the minister, more than 1,100 contracts worth Rs 4,600 crore of PHED were awarded by the previous government in 17 months. The minister said the ministry reserves the right to cancel tenders at any time until the agreement is signed by the contractors. “It (cancellation of contracts) is not a big problem,” the minister said, citing various reasons for cancellations such as tariff revision and delays. He added that providing water to the affected regions was the government’s top priority.

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