OC seeks extension to return equipment

Faced with the unsavoury prospect of having to pay heavy fines for delay in returning of the equipment, the Organising Committee (OC) of the Commonwealth Games (CWG) is set to request the Central government for a waiver of 30 days more for sending back the hired equipment to their respective destinations or countries.

According to sources, as many as 171 shipments carrying major equipment of foreign contractors are still lying at various ports in the country. All the equipment, which are lying in containers should have left India by January 14 as per agreements. The OC, while signing agreements with the foreign companies had made it clear that all the hired equipment should be sent back to their respective destinations within three months of the completion of the Games, implying January 14 to be the last date.
There is also a possibility that the government may ask certain top brass of the OC, including its Chairman Suresh Kalmadi, to step down from their posts they are holding in view of the alleged corruption charges they are facing in certain CWG contracts. A decision to this effect is likely to be taken in a day or two, sources added.
As far as pendency of the shipments are concerned, sources further said, “The agreements also say that if the containers are not released by January 14, the OC is supposed to pay heavy penalties to the contractors”. This is the reason that in view of 171 shipments still waiting at various ports in the country even after the deadline, the OC has now decided to request government to extend the deadline for 30 more days, sources added.
“If the deadline is not extended, then the OC will deduct the penal amount from the payments of the contractors. The shipments of only those contractors are waiting at the ports who have failed to produce the required documents, including the Duty Exemption Certificate (DEC)”, sources said. There is no fault or delay on the part of the OC, sources added.
The OC has reportedly stopped the payments of those contractors, who have not submitted all the required documents so far for customs clearances, sources said. Recently, the high commissions of Australia, Italy, France and the United Kingdom had written to the central ministries concerned seeking expeditious clearance of payments to the tune of around `350 crores by the OC to the contractors of their respective countries who supplied equipment for the Games.
The high commissions had requested the authorities concerned in India to expedite the process of giving technical clearances so that the contractors can get their shipments and payments on time. Reacting to this, a senior official of the OC said, “Payments to foreign contractors can only be released after getting clearances from the authorities concerned”
Terming it as “crisis-like situation”, a source said, “Before sending hired equipment to their respective destinations, OC requires approval from the Reserve Bank of India also”.

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UD ministry to give report of projects
AGE CORRESPONDENT
NEW DELHI

Jan. 14: The parliamentary standing committee on urban development, headed by JD(U) president Sharad Yadav, has called the top officials of the urban development ministry to present their brief on the role and performance of various agencies under it in implementing Games-related projects.
A meeting of the committee is scheduled for January 18, where the issues of alleged irregularities in connection with the Commonwealth Games is likely to be taken up.
Top officials, including the urban development secretary, would be present at the meeting to explain the ministry’s stand on the issue and the action taken in this regard.

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