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This is an archive article published on July 19, 2012

UP makes e-tendering compulsory for mining

After talking about IT initiatives for four months,the UP government has finally made e-tendering compulsory for mining contracts.

After talking about IT initiatives for four months,the UP government has finally made e-tendering compulsory for mining contracts.

While some departments have selective e-tendering,mainly for Central schemes,the state’s Geology and Mining Department has completely switched to e-tendering,a significant move since the department is notorious for corruption and politician-official-contractor nexus.

In the 12 days since e-tendering in mining began,as many as 340 contracts from about 30 districts have been notified online. By July 31,the entire state will be covered.

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The Mayawati government had decided to introduce e-tendering in all departments and much work was done,but the project was abandoned for no apparent reason.

In the past,contracts were awarded on “first-come-first-serve” basis. In the new system,the tender is put on http://www.etender.up.nic.in and anyone can apply. Uttar Pradesh Electronics Corporation is the nodal agency and each company or individual applying for e-tender is first required to have a digital signature,which will be registered with UPECL. The districts which have started the process include six districts of Bundelkhand.

The government has decided to award tenders on the basis of maximum royalty offer. To curb illegal mining,the government has fixed a time limit of six months for contractors to get environment clearance,failing which their security deposit,which is 25 per cent of the entire mining contract,will be seized.

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