Road transport and highways minister Nitin Gadkari Wednesday warned that his ministry will use Goods and Services Tax (GST) records to track multiple layers of subcontracting by road builders, amid concerns over projects being bid out at abnormally low price and dilution of quality.
Speaking at a conference on tunnel construction — organised by industry body Ficci — Gadkari said there are set norms for subcontracting of works, but highway builders often flout that norm.
Referring to a recent incident in Pune, where a contractor won a contract by bidding 40% below the bid estimate and subsequently subcontracted the work to another player at a lesser price, he said the second contractor then subcontracted it to a third.
Gadkari said this practice is affecting the quality of work. “Nowadays, we can come to know which GST was filed for which work and by whom. We can catch such players who flout defined norms for subcontracting,” he added. The minister said that while earning money is not a crime for anyone in business, none should compromise with quality of work.
Taking a dig at “connivance” of officers and contractors by calling it a “sweet relation”, the minister said private players, in some cases, help officers prepare and influence bidding norms with the target to see that some players don’t qualify in the bidding.
He also called consultants involved in preparing defective detailed project reports (DPRs) the “culprits” behind accidents and deaths on highways. He also warned contractors of blacklisting and other action for compromising construction quality.
Source from: https://timesofindia.indiatimes.com/business/india-business/gadkari-warns-road-builders-gst-trail-to-expose-multiple-layers-of-subcontracting/articleshowprint/133355742.cms
