BRS demands scrapping of centralised PMU tender system for welfare hostels

The BRS has demanded the withdrawal of Telangana’s centralised PMU tender system for supplies to residential schools and welfare hostels. T Harish Rao alleged tender irregularities, inflated rates, bribery and inadequate deliveries, seeking a return to procurement through local vendors.

Hyderabad: Alleging irregularities in the award of an Rs 800-crore contract and disruption of supplies to students, the BRS demanded that the Congress government scrap the centralised Project Management Unit (PMU) tender system for supplying essential commodities to residential schools and welfare hostels. The party sought restoration of the earlier system under which local vendors supplied provisions to individual institutions through District Purchase Committees (DPCs).

During a meeting with representatives of the Telangana Gurukul Contractors Association at his residence on Tuesday, BRS deputy floor leader T Harish Rao said the Congress government had awarded the contract to NACOFF, a company allegedly blacklisted over violations, despite the reported forfeiture of its Rs 65-crore deposit with Telangana Civil Supplies. He also alleged that the company had been banned in Odisha and Jharkhand.

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The BRS Legislature Party (BRSLP) deputy leader said the tender conditions effectively excluded local vendors through high earnest money deposits. He alleged that the State-wide contract was subsequently distributed among 12 subcontractors across 33 districts, in violation of tender rules. Citing media reports, he alleged that bribes amounting to Rs 66 crore had been paid, apart from monthly commissions of 20 per cent on bills.

He said the contracted rates were 35 to 45 per cent higher than those offered by local vendors, while supplies remained inadequate. The company was expected to begin deliveries in June, but hostel principals had to rely on earlier local suppliers for the past three to four months, he said.

Of nearly 4,000 hostels, only 280 centres had reportedly received limited supplies before the Dasara holidays. The materials supplied were allegedly substandard and lacked brand details, bills and expiry dates, he added.

Harish Rao said a similar centralised procurement system introduced by the same company in Andhra Pradesh had been withdrawn within three months following complaints and operational problems. He questioned why Telangana was pursuing a model that had reportedly failed in the neighbouring State.

He also alleged irregularities in earlier tenders for uniforms, notebooks, trunks and other student supplies, claiming that the BRS had exposed a Rs 2,000-crore scam. He warned that the party would launch a larger agitation if the government failed to withdraw the centralised tender system.