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Monday, July 27, 2015

Scripting the corruption on hand made paper , Maharashtra Chikki Scam Part 5

The women child development minister awarded around 12.31 crore printing contract to Handmade paper Institute (HMPI) pune without tender and any competitive bids. Every body in this deal knew that HMPI was leased out way back and not entitled for any rate fixation.


Photo courtsy www.erewise.com

Draft of the Indian Constitution was written down by Dr Babasaheb Ambedkar on papers manufactured in Handmade Paper institute (HMPI) in pune. Indeed a moment of pride for it. However latter on babus of Khadi Gramodyog Village industries wrote a script of corruption on the same paper. Some officials of HMPI deliberately help decrease revenue and production of HMPI and eventually this unit was leased out to a private contractor in 2010. Not even that, they helped private contractor whom HMPI was leased out to bag government orders without any competition or tender.
Photo Courtsy thehindubusinessline.com

To understand magnitude of corruption let us see a calculation. Suppose HMPI as per its present full  capacity produces 1,11,000 kg  ( One lakh eleven thousand paper per year ) normally cost of hand made paper in market  is 140/kg. but assuming that it is 200 /kg it comes to 2,22,000,00/- (two crore twenty two laks). The HMPI has bagged contract from Women and child welfare (WCD) to the tune of 12.50 crores.   In addition to this HMPI caters to other government authorities .But can they produce so much handmade paper ? definitely not.

Handmade paper is produced from cotton rag waste from the cotton garment/ undergarment industry. More importantly, no toxic chemicals are used in the handmade paper making process. Handmade paper has the advantage of being 100% wood free which makes it the most eco-friendly form of paper and hence has high demand from government organizations. And  as per GR dated 2 January 1992 some Items were reserved to be purchased from this institute only being run by government.

Photo courtsy wwwdsource.in

Later on  Handmade paper Institute ( HMPI) of Khadi Gramodyog Village Industry ( KVIC)  was leased to private contractor in 2010 (Anne - 27) .This unit has capacity of  making  only hand  made paper up to maximum 20 – 25 tone /year. It has no printing unit. Some printing is done by screen printing method. Before leased out HMPI,s production capacity was reduced to 70 kg per day with 84 workers.( actual capacity was 240 kg/day). After leased out a private contractor a electric machine was introduced and production was increased by another 200 to 300 kg / day i.e. total capacity to 270 to 370 kg/day.( Two shifts)
Photo courtsy mumbaimag.com

Actually as this unit was leased to private contractor hence, and as per HC order and Government decision on Rate fixation, was not entitled to any type of rate fixation with government. Despite it some item (Anne – 28) reserved for institute and rates were fixed as if unit was run by government itself. And also extension was given to it repeatedly and also ceiling on purchase was vacated( Anne -29  ) (Remember high court order and government decision on rate fixation )

Then some officials of KVIC posed before WCD  as if unit was run by government Also assured of all the process of manufacturing is done in institute itself. And requested to allot work to handmade paper Institute (Anne -30)


Accordingly work was allotted to private party without tender. None of party related to this case was innocent. Everybody new what was going wrong. But was a silent party to money siphoning business.

A) Kalpak Rachana sanch, etc 4 items     -  4,89, 38,385/- ( Anne -31 )
B) Probodhan per Mahitee Pustika  -        - 2, 92, 54,351/- (Anne -32)
C) Handmade paper calendar                   - 99,99,425/- (Anne -33  )
D)Registers etc                                        - 50,43,990  ( Anne  -34  )
E) Handmade paper Drukk sandesh Pustika – 2,99, 52,955/- (Anne -35  )

Total work of 12,31,89,106  -  was allotted. All the orders issued on same day i.e. 13 February 2015. Without even knowing capacity of Institute.


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