Flouting norms, Punjab health corporation awards Rs 52-cr contract for rehab drug

Tribune News Service

Vishav Bharti

Chandigarh, May 26

In alleged violation of the norms, Punjab Health Systems Corporation (PHSC) awarded contract worth over Rs 52 crore to two firms for supplying de-addiction medicine. The order for the annual supply of 80 lakh strips of buprenorphine naloxone tablets was placed despite the suspected “price pooling” by the firms. The move would cost the exchequer Rs 3.76 crore per year.

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As per the documents available with The Tribune, from 2020 onwards, the corporation had been procuring the medicine for Rs 60.82 per strip. The contract was valid for two years.

The corporation again floated the tenders this year. What has raised the eyebrows is that two remotely located companies, one operating from Mumbai and the other from Gujarat, quoted the same price i.e. Rs 65.52 per strip. As per norms, the quotation of exactly the same price should have been rejected, especially when the government has to bear an additional cost. But the PHSC went ahead with the process and divided the order equally among the two companies. A rate contract was signed on March 31 this year, soon after Dr Vijay Singla took over as the Health Minister.

The government thus agreed to pay Rs 4.7 per strip extra as compared to the previous rate contract. For around 80 lakh strips, it will have to shell out an additional Rs 3.76 crore per year.

A former official, who was in-charge of the medical procurement, said as per the rule, if the price quoted by different companies was the same, the authorities were bound to check if there was any cartelisation. “If the price quoted is higher than the previous contract, the government should float the tender again,” he said.

Neelima, Managing Director, PHSC, said the process was completed before she assumed the office, so won’t be able to comment without going through the details.