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Volvo buses bought for higher price?
Eyebrows were raised over the TSRTC managements’ move to procure high end Volvo buses at a higher rate than the buses that were procured by neighbouring Andhra Pradesh State Corporation.
Hyderabad: Eyebrows were raised over the TSRTC managements’ move to procure high end Volvo buses at a higher rate than the buses that were procured by neighbouring Andhra Pradesh State Corporation.
The RTC workers union leaders alleged that the TSRTC ordered for eight Volvo buses at a rate of Rs 1.02 crore each while its Andhra Pradesh counterpart purchased them for Rs 97 lakh. The Union leaders alleged that the officials had spent Rs 5 lakh more on each bus and imposed an additional burden of Rs 40 lakh on the debt ridden corporation.
- The RTC workers union leaders alleged that the TSRTC ordered for eight Volvo buses at a rate of Rs 1.02 crore each while its Andhra Pradesh counterpart purchased them for Rs 97 lakh
- The union leaders said that during the undivided corporation, the buses used to be purchased at Rs 80 lakh to Rs 85 lakh. They demanded the government to order an inquiry to bring out the truth
CPM state secretary Tammineni Veerabhadram alleged that the TSRTC management purchased two Volvo buses at Rs 1.2 crore when Scania Company was providing the similar bus at Rs 97 lakh. The TSRTC management had ordered eight more buses from which means Rs 40 lakh extra burden for the corporation.
The CPM leader wanted the state government to clear the doubts on the deal and also wanted the government to clarify on why buses were purchased at higher price. The union leaders said that during the undivided phase, buses used to be purchased at Rs 80- 85 lakh. They demanded the government order an inquiry to bring out the truth.
However, the RTC management refuted the allegations. RTC JMD G V Ramana Rao said that the corporation had invited tenders in January 2016 for procurement of 10 Garuda Plus Multi Axle vehicles from Mercedes Benz known as Scania. Mercedes Benz did not participate in the tenders and Volvo quoted the lowest rate with Rs 1,06,85,000 and Scania with Rs 1,08,85,481.
He said that the high level committee after detailed negotiations and considering the credentials of the firms recommended placing bulk order on Volvo, being time tested product in TSRTC. With Scania being a new entrant and there was no experience regarding its performance, a trial order was given with two buses for assessing the product performance in due course, he said.
The JMD said that Scania came forward by reducing the offer price to Rs 1,05,10,000. He said that there were no violations and it was totally in accordance with tender conditions. He said even the neighbouring AP had purchased Scania buses for the same rate.
