In an unprecedented move,the Centre,the State and a PSU have inked a pact to execute a development project.

In the instant case,executioner is IRCON International Ltd.The Centre and the State are Union Ministry of Rural Development(UMRD) and Rural Works Department(RWD) of the Jharkhand Government respectively.The development project is- Pradhan Mantri Gramin Sadak Yojna(PMGSY).

The tripartite agreement was signed today by IRCON’s Chairman Hitesh Khanna,UMRD’s Joint Secretary PK Anand and RWD’s Principal Secretary Santosh Kumar Satapathy.

They signed the agreement to execute the PMGSY works-roads and bridges- in Jharkhand’s five Maoist infested districts-Garhwa, Gumla, Ranchi, Lohardaga and Simdega.The estimated work load proposed to be handled by IRCON in these districts is Rs. 850 crore.

This is for the first time such an agreement was signed in the country with regard to implementation of PMGSY.

The agreement has its own backdrop.Most of the roads constructed under PMGSY lacked quality.The RWD was bereft of qualified,competent and experienced man power to handle the PMGSY project.Moreover,in this state where corruption has been rampant,cuts and commissions varying between 20 and 40 percent,had left the flagship programme suffer. With an aim to arrive at a solution,the RWD led by Satapathy prepared a proposal.In response,UMRD considered it and accorded its approval to engage IRCON to execute PMGSY works in these districts.Soon,a draft Tri-partite Agreement was circulated for comments vide this Ministry letter No. No.P-17024/37/2007-RC (Part) dated 20th Feb, 2013.

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The agreement has the following main features:

  • IRCON shall be executing agency
  • IRCON has agreed to execute works and maintain the same for five years under the project,on behalf of Jharkhand government,subject to the construction funds and maintenance funds being released to it by UMRD and RWD respectively.
  • RWD to provide separate funds in time to IRCON for maintenance of the constructed roads for five years post construction period as per PMGSY guidelines.
  • List of roads for implementation to be identified,selected and communicated from time to time by RWD.
  • A coordination committee will monitor the implementation of the programme on quarterly basis.And similar coordination committee comprising Deputy Commissioner,SP and Suprintendending Engineer of the state government will be set up at the district level as well as the IRCON’s office.
  • IRON shall ensure that the provision of the “Quality Control Handbook” are applied to PMGSY funded works.
  • Payment shall not be made to the contractor unless the test results have been found to be satisfactory.There shall be an Independent Quality Coordinator of a senior rank at the main project office of IRCON.
  • Before awarding contract works,IRCON will intimate to RWD’s Jharkhand Rural Road Development Agency and UMRD’s National Rural Road Development Agency.
  • If at any time,UMRD comes to the conclusion based on a request of RWD or otherwise that IRCON is unable to perform its role as executing agency,UMRD may appoint another agency,to take one of the tasks and functions,being performed by IRCON in any or all the districts allotted,or may assume the role of executing agency itself and terminate the agreement with IRCON.

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