Pune : Terrestrial Cable Network Contract Cancelled by Municipal Commissioner Shekhar Singh After Objection By City Politicians
Pimpri, 11th October 2023 : In a significant decision aimed at upholding the integrity and adherence to contractual obligations, Municipal Commissioner Shekhar Singh has revoked the contract of the terrestrial cable network in Pimpri-Chinchwad. This move comes as a result of the partner company, Suyog Telematics, Fiber Story Communication, failing to fulfil the terms of the contract, specifically related to a bank guarantee and compliance with stipulated requirements.
Under the Pimpri-Chinchwad Smart City initiative, a substantial 600 km underground cable internet infrastructure was established. The Smart City authorities had issued a tender worth Rs 300 crore for the leasing of this cable network. The agreement was structured as an income-sharing arrangement over ten years, with the Municipal Corporation anticipating an annual revenue of 32.4 crores through rent.
Three companies participated in the tender process, and ultimately, the contract was awarded to Suyog Telematics, Fiber Story Communication, which had submitted the most competitive tender rate. However, objections arose concerning the company’s directors’ involvement in a case related to a fake telephone exchange. NCP’s city president, Ajit Gavane and former corporator Seema Sawale brought forth these concerns, supported by documentary evidence. It was asserted that certain documents were forged during the tendering process.
Despite these objections, the contract was initially approved earlier. However, the municipal commissioner reconsidered the decision and the contract was revoked.
Subsequently, it was revealed that Suyog Telematics, Fiber Story Communication, had failed to provide the necessary bank guarantee and did not meet the specified terms and conditions outlined in the agreement. As a result, the contract was officially cancelled. Importantly, Commissioner Singh clarified that the contract cancellation was not a direct consequence of the director’s legal charges but rather due to the failure to meet contractual obligations and adhere to the agreed terms and conditions.
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