CVC queries MoRTH over Rs 10,050 cr Zojila tunnel contract

The Central Vigilance Commission has sought details from Road Transport and Highways Ministry over cancellation of Rs 10,050 crore Zojilaa Pass tunnel contract in Jammu and Kashmir.
The Ministry in March ordered "rebidding" of the contract, which was earlier given to IRB Infrastructure.
The CVC has sought further clarification on the matter from Chief Vigilance Officer of the Ministry with regard to reasons of withdrawal of contract, which is still awaited, official sources said today.
Congress General Secretary Digvijay Singh had in January written to the CVC alleging that Road Transport and Highways Minister Nitin Gadkari had violated the Commission's guidelines while awarding the contract.

Gadkari had rubbished the charges of corruption and termed Singh's allegations as "completely false".
Following the Congress leader's letter, the CVC had conducted intensive examination of construction of Zojila Pass tunnel which was done in February. Subsequently, the contract given to IRB Infrastructure was cancelled in March.

The company had on January 3 intimated BSE about the letter of award for Construction, Operation and Maintenance of Zozila tunnel including approaches on NH-1 (Srinagar-Sonmarg- Gumri Road) on Design, Build, Finance, Operate and Transfer (Annuity) basis.
Soon after the award, the Road Transport Ministry had said all due processes in line with the Cabinet approval were followed in award of strategic Rs 10,050 crore contract to IRB Infrastructure.

The statement had come a day after Congress had demanded sacking of Gadkari, alleging that the award was a "clear case of corruption at the highest level".
"The Ministry of Road Transport & Highways follows due procedure while maintaining complete transparency in the award of any contracts. In the instant case also, the contract was awarded after due diligence after the bid was found technically responsive. Financial bid was opened and the quoted Semi Annuity amount found in line with the approval of Cabinet Committee on Economic Affairs for award of the work," an official statement had said.