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Rajeev changes his Swaroop

MD on leave, RIICO chairman reverses her orders

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Rajeeva Swaroop and Mugdha Sinha
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It seems everyone in the RIICO was waiting for Managing director Mugdha Sinha to proceed on long leave. As soon she went on leave many of her decision were reversed by the RIICO’s IDC committee. Ms. Sinha had not released minutes of IDC meeting held on August 19 because the decisions were contrary to her wishes. But, after she went on leave, the minutes of the meeting in which many important decisions were taken immediately released. Some of these decisions show that MD’s wings have been clipped.

Let’s tell you one by one about the decisions taken in the RIICO’s IDC meeting. RIICO chairman has cancelled contracts for works in Giloth that were issued by the MD on a single tender. Ms. Sinha had given a single bidder contracts worth Rs 7 crore in the previous IDC meeting. Further, it has been clearly mentioned in the minutes about objections to single tender in Giloth. “What is in Giloth that single tenders are given,” it was asked as the RIICO chairman has instructed GM (Civil) to visit Giloth to investigate the matter.

The MD had also issued order for online payments for all works, which resulted in problems in case of small payments. The businessmen had raised this matter but did not get any relief. Now, small payments would be accepted through cheques or drafts. RIICO regional office will hold special camp from November 23 but the regional managers did not have any powers from now onwards they won’t depend on the MD as some of her powers have been divested to them. The RIICO chairman was also angry about direct correspondence with government departments. Officials have been asked to route all correspondence through administrative department of the industry department. This in a way ended her autocratic functioning.

The regional office was unable to take decision where investment was less than Rs 50 crore but land was more than 2000 square meter because the MD had constituted an appraisal committee of eight members whose recommendations were sent to IDC. This was a long process, which is likely to be changed as there is consensus to give more power to unit heads. The pretext is that old system could have dissuaded investors but actually it is to reduce MD’s powers.

If allotment cancelled, there will be provision of a second appeal but the power to hear it will not be with the MD rather with a higher officer or chairman. The MD had not made provision of second appeal in that case if she cancelled someone’s appeal, there was no chance of getting relief because allotments cancellation was done at her level. Her stubborn attitude had created dejection among employees. Now, her charge has been given to Tina Soni who has been clearing files at a fast speed that pendency is likely to be over soon. But, the moot question is what when the MD returns from her leave.

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