Centre cancels Rs 2,000 cr TN Fibernet project over various irregularities

The Union government has cancelled the tenders for the Rs 1,950-crore BharatNet project undertaken by the Tamilnadu Fibernet Corporation Limited (TANFINET), following allegations of irregularities.

The Department for Promotion of Industry and Internal Trade (DPIIT) said in a letter that a meeting was held on 23 June via video-conferencing led by the Additional Secretary of the DPIIT and attended by officers from the government of Tamilnadu, TANFINET and NGO Arappor Iyakkam had alleged that the conditions on the tenders floated by TANFINET made only a few firms eligible to apply, Tejas Networks and TEPC, New Delhi

NGO Arappor Iyakkam had alleged that the conditions on the tenders floated by TANFINET made only a few firms eligible to apply. As such, TANFINET should scrap the tender and re-invite the bids with non-restrictive qualification criteria,’ the letter said.

After a Chennai-based anti-corruption NGO flagged irregularities in the Rs 2,000 crore-worth BharatNet project undertaken by the Tamil Nadu Fibernet Corporation Limited (TANFINET), the government of India has cancelled the tenders.

Based on its complaint, the DPIIT had, in May 2020, ordered a stay on the project and directed the government of Tamil Nadu to file a report on the complaint. The DPIIT had also directed the state government to not finalise the purchases related to this project unless all the issues raised are addressed by the relevant authorities.

As per the NGO, these tweaks made only a few big companies eligible to participate in the tender process. It also alleged that the state government had transferred two IAS officers of TANFINET when they resisted these changes.

Seeking the removal of the state IT Minister from his post, Arappor Iyakkam said, “This has also disproved Minister R B Udayakumar’s claim that there is no favouritism or illegality or irregularity in the tender.”