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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Rs 1,136-cr digitisation contract under scanner

Disclosures on pricing and volumes in a five-year modernisation project have raised questions about costs and oversight. Mumbai: A project described as a routine “digital transformation” of Maharashtra’s registration machinery has raised eyebrows after regulatory disclosures indicated that its billing could reach a staggering Rs 1,136 crores over five years. The Inspector General of Registration & Controller of Stamps (IGR), which comes under the state’s revenue department, has issued a...

Rs 1,136-cr digitisation contract under scanner

Disclosures on pricing and volumes in a five-year modernisation project have raised questions about costs and oversight. Mumbai: A project described as a routine “digital transformation” of Maharashtra’s registration machinery has raised eyebrows after regulatory disclosures indicated that its billing could reach a staggering Rs 1,136 crores over five years. The Inspector General of Registration & Controller of Stamps (IGR), which comes under the state’s revenue department, has issued a Letter of Intent to a consortium led by the Navratna public-sector firm RailTel Corporation of India Ltd., alongside the Nashik-based infrastructure company Ashoka Buildcon Ltd. The consortium has been appointed as managed service provider for a comprehensive modernisation of IGR offices across the state. The five-year turnkey contract covers end-to-end operation and maintenance of IT systems, networks, cloud services and application infrastructure, as well as the scanning of official documents. Execution is scheduled to run until March 19, 2032. It is the financial structure, rather than the scope, that has prompted unease. The approved rate for scanning registered documents is Rs 24.75 per page. Industry sources say prevailing market prices for bulk document scanning typically range between Rs 3 and Rs 6 per page - roughly a quarter of the contracted rate. Costly Contract In identical filings with the NSE and BSE last week, the consortium partners referred to historical data in the request for proposals showing that an average of 9.18 crores pages were scanned annually over the past five years. At the agreed rate, this would translate into payments of around Rs 227 crores a year, taking the projected total to about Rs 1,136 crores over five years. The contract does not specify a ceiling, and payouts are expected to vary with actual volumes. Critics and watchdogs argue that the absence of a fixed cap, combined with a per-page charge well above market levels, leaves room for inflated bills or padded volumes. Prafful Sarda, a Pune-based social worker, questioned the rationale for outsourcing the task. Even if Rs 10 per page were taken as a generous benchmark using advanced machines, Sarda asked, “what is the need to award the scanning contract at a massive cost to outsiders when the state government can itself do it at a much lower cost.” He also raised doubts about the composition of the consortium. “What is the expertise in IT-related work of Ashoka Buildcon Ltd., which is a road infra developer. Moreover, scanning is an easy process – a 100-page file can be scanned and uploaded in barely five minutes. Massive discounts are offered for bulk works. Are the IGR staffers so over-burdened that scanning work has to be outsourced at exorbitant public cost?” Sarda said. According to him, contractors would gain access to sensitive land and property records, as well as information on real-estate preferences and market trends, potentially giving them an early advantage in identifying future development opportunities. He compared the case to what he described as the IRCTC spending Rs 2,619 crores on website upkeep and maintenance over three years, along with Rs 1,950 crores in UPI fees, figures cited in an RTI reply and reported earlier by this newspaper. When contacted, a spokesperson for Ashoka Buildcon said the company was a minority partner in the RailTel-led consortium and that “hence, we are not allowed to speak in the matter.” The spokesperson also declined to comment on when the five-year contract would commence, noting only that the stipulated completion date is March 2032.

Marathwada’s Soybean Squeeze

Updated: Oct 21, 2024

For the Shinde-led Mahayuti government, the soybean crisis in Marathwada should serve as a wake-up call as campaigning intensifies ahead of the crucial Assembly election.

In the drought-prone Marathwada region, soybean, a crucial kharif (monsoon) staple, has faced a serious blow this year as a deadly combination of erratic (and unusually heavy) rainfall and soil degradation has led to dwindling yields for farmers already steeped in debt. The crisis has not only deepened rural distress but also dented the political credibility of the Eknath Shinde-led Mahayuti government in the recently concluded 2024 Lok Sabha elections.

Farmers’ frustration, particularly over the low prices and inadequate support, was reflected in the electoral results. Discontent was not limited to soybean farmers but extended to those growing onions and other crops similarly affected by the erratic weather. The opposition parties capitalized on this anger, contributing to the ruling coalition’s losses in crucial constituencies.

Soybean cultivation is central to Marathwada’s agricultural economy with approximately 60% of the region’s cultivable land dedicated to it. However, this year, the area under cultivation fell sharply by 15%, while the yield per hectare has plummeted by nearly 20% compared to previous years.

Discontent among the rural electorate translated into a significant loss of votes for the Mahayuti coalition in the Lok Sabha election, which had counted on Marathwada as a stronghold. Many farmers switched their allegiance to opposition parties, particularly the Congress and the NCP, viewing the ruling government as ineffective in mitigating the crisis.

While promises of crop insurance and subsidies are being made, the delayed rollout of relief measures is aggravating the situation. Farmers are reporting delayed compensation under the Pradhan Mantri Fasal Bima Yojana (PMFBY), India’s crop insurance scheme, which failed to provide timely payouts. To compound the issue, local cooperatives responsible for distributing government aid are being accused of corruption and inefficiency, thereby eroding trust among farmers.

To stem the erosion of its rural voter base, the Shinde government must take decisive action. Strengthening the PMFBY is a critical first step. Insurance payouts need to be streamlined and simplified, ensuring that claims are processed within a few weeks rather than months. The scheme also needs to account for pest attacks and erratic rainfall more accurately, as these are increasingly frequent due to climate change. Enhancing the precision of satellite-based yield assessments would ensure that more farmers receive timely compensation.

Additionally, the government should consider targeted subsidies for soybean growers, particularly for pest-resistant seeds and organic pesticides. A concerted push towards water conservation, particularly through promoting drip irrigation, could help mitigate the impact of future droughts. The state’s ‘Jalyukt Shivar’ campaign, launched in 2015 to boost irrigation in drought-hit regions, could be revitalized, but with greater accountability to ensure funds are utilized effectively.

The state’s past experiments with price stabilization funds, such as the Maharashtra State Agricultural Marketing Board’s attempt to guarantee minimum prices for soybeans, also offer a lesson. While well-intentioned, these initiatives were hampered by poor implementation and market manipulation by intermediaries.

For the Mahayuti government, immediate corrective measures like providing pest-resistant seeds, and reinvigorating irrigation schemes are essential not only to revive the fortunes of the state’s farmers but also to secure the government’s rural support base. Without these, the agrarian distress that continues to plague Maharashtra risks becoming a persistent political liability, as history has repeatedly shown.

(The writer is a farmer and resident of Latur district; views personal)

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