Times Group wants to ‘manage’ event for Andhra Pradesh

Proposed contract is for Investment Summit to be held along lines of Vibrant Gujarat

Update: 2015-07-18 01:47 GMT
Andhra Pradesh Chief Minister Chandrababu Naidu (Photo: PTI)

Hyderabad: The Andhra Pradesh government’s move to hand over a Rs 70-crore event management contract to a company allegedly belonging to the Times Group under a Swiss Challenge method, which allows for contracts based on unsolicited proposals from private firms, has aroused a lot of curiosity and criticism.

The proposed contract is for the Investment Summit to be held along the lines of the Vibrant Gujarat conclave. It will be held in Visakhapatnam in October. The curiosity stems from the fact that the contract comes barely a month after “the nation wanted to know” on Times Now channel, what right Andhra Pradesh Chief Minister N. Chandrababu Naidu had to splurge a whopping Rs 100 crore of public money for renovation of personal and official residences and for official trips on private choppers when the state is actually starving for funds with a staggering revenue deficit of Rs 16,200 crore.

The nation now wants to know: Does an additional expenditure of Rs 70 crore to actually “manage” an event, help the state come out of its financial distress?

The decision was taken at a meeting of the State Investment Promotion Board, chaired by Mr Naidu, on June 22. The meeting authorised the CM to go in for a Swiss Challenge method and hand over the management of the event to the Times Group which had approached the state government.

The Times Now story was telecast on May 4, lambasting the Naidu government for “squandering Rs 45 crore on his personal residence and another Rs 25 crore on his official residence as well as spending more money for trips within India and to Japan, Singapore etc”.

Senior officials, meanwhile, are tight-lipped over the decision saying it was not an administrative decision. “Normally such decisions are taken at the highest level and we have little role to play,” an official said on condition of anonymity.

Read: Andhra Pradesh says no firm decision taken

Political parties meanwhile have demanded complete transparency over the “transaction”. “This government should represent people and the decisions should be people-centric and not corporate-centric. How can such a huge contract be given without assessing all the pros and cons? Why is there so much secrecy? The government must explain on what basis the contracts are given, to whom and by whom. When no political head or official is forthcoming to explain, naturally we have to demand that everything should be made public,” said CPI leader K. Narayana.

“The state government has time and again said it is in deep financial distress and in deficit. Now, you are set to give a group Rs 70 crore or more without any basis, leaving crores of poor ryots and Dwcra women to their fate. Mr Naidu is known for wasteful expenditure and if we ask him, he sheds crocodile tears. The government must explain the deal behind awarding the contracts,” said YSR Congress MLA R.K. Roja.

Meanwhile, the state government has said that no firm decision has been taken on the contract. “The Times Group has approached the government with a proposal. After that, the government constituted a committee headed by chief secretary I.Y.R. Krishna Rao to give its view. No decision has been taken,” media adviser to the Andhra Pradesh government told this newspaper.

As another can of worms looks set to be opened, the nation now wants to know if this will be debated equally passionately.

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