High security number plates from Dec.1

SC norms given go-by in Rs 2,000-cr project

• Project being implemented sans authorised vendor
• Financial irregularities, security concerns alleged

Even as the State government has announced implementation of the prestigious Rs 2,000-crore high security registration number plates (HSRP) project from December 1, serious doubts are being expressed over the legality of the bidder and genuineness of the manufacture of the plates itself.

The project is not only going to result in a high burden on the motorists in the State, but also involves security fears as the plates are in danger of being manufactured at an unauthorized plant in the name of the main bidder who has backed out.

It may be mentioned here that the Supreme Court, while stressing the importance of HSRP, had set the December 1, 2013, deadline for the rollout of the project. The high security plates cannot be tampered with. Its features include a non-removable snap lock, seven digit unique laser code, a chromium base of Asoka Chakra and a self-destructing windshield sticker.

To make it foolproof, the Court also held that in such circumstances where the partner with expertise is walking out from performance, the government is supposed to call for new tenders or negotiate with the L2 and L3 bidders in the tenders. (L2 and L3 represent the next lowest bidders – second and third respectively).

However, the Andhra Pradesh government is not heeding any of the SC orders, with the result that not only there could be financial irregularities but also the efficacy of the plates itself could be called into question.

In the present case, even the price of the HSRP is said to have been inflated. The average price for each HSRP is Rs 220. This is in a sharp contrast to the average price of Rs 119 for a HSRP in Delhi.

Thus, sources say, an estimated amount of Rs 578 crore would be additionally paid by the motor vehicle owners in the State, as compared to other States like Delhi. The HSRP contract is for 15 years to cover the existing 1.4 crore plus motor vehicles and lakhs of vehicle that would add up every year.

The State government, after inviting the tenders for a third time, finally selected in February 2013 a vendor – a consortium of two firms Utsav Safety System Pvt Ltd (USSPL) and Linkpoint Infrastructure Pvt Ltd (LIPL) – which emerged as the lowest bidder to provide HSRP. In the consortium, USSLP is the parent company, which holds the mandatory Type Approval Certificate (TAC) from the Ministry of Road Transport & Highways (MORTH). It is also authorised to manufacture and supply the hi-tech plates. The concessionaire agreement between the AP Transport Department and the consortium also mentions USSLP would be solely responsible for manufacturing and supplying the HSRP.

However, on October 17 this year USSLP informed the State government and the Transport Department that it was withdrawing from the partnership with LIPL, as the latter was allegedly involved in illegal supply of HSRP.

In its letter to the government, USSLP described LIPL as a fake company. It complained that LIPL, along with another company Rosemerta Technologies Ltd, was planning to supply HSRP illegally manufactured at an unauthorised plant in name of USSLP.

It may be noted that USSLP is also the HSRP manufacturer and supplier to five other States – Madhya Pradesh, Delhi, Haryana, Uttarakhand, Bihar and Himachal Pradesh.

But, it faced a piquant situation in Andhra Pradesh only.

Nevertheless, Transport Minister Botcha Satyanaryana announced on November 5 that the HSRP project would be implemented from December 1, as directed by the Supreme Court.

Rollout doubtful

Meanwhile, even as the December 1 deadline is fast approaching, the government is yet to issue notification to implement the project, which would take at least nine days.

The implementing agency in the state, AP State Road Transport Corporation (APSRTC), believes that the project can be rolled out at the earliest by the first week of December, if the notification is issued this week.

• USSPL, main partner with expertise, walks out

• But, govt goes ahead with other partner of consortium

• As per SC norms, it should either call new tenders or hold talks with other lowest bidders

• The other partner alleged to have roped in a company to make the plates illegally in the name of USSPL

• Project cost itself inflated. A motorist in AP will pay Rs 220 as against Rs 119 in Delhi

• Even the SC’s rollout date is doubtful