The installation of artificial intelligence (AI) traffic camera surveillance system in Kerala as part of the Safe Kerala project has been mired in controversies, including corruption and nepotism charges in the award and execution of the multi-crore Keltron-configured project. Madhu Nambiar, chairman and managing director (CMD) of SRIT India Private Ltd, the Bengaluru-based company which has been at the centre of a storm in connection with the project, speaks to The Hindu about the circumstances which led the company to announce its decision to exit the State. Excerpts from the interview:
Could you brief about the various cost components of the project to clear the air regarding the corruption and nepotism charges?
Though the entire project cost is estimated to be around ₹235 crore, SRIT quoted the bid to implement it for about ₹151 crore. It is true that the traffic surveillance project, including the infrastructure, would cost only around ₹75 crore. Soon after the company won the bid, we paid a security deposit of ₹6 crore as mandated by the tender. Further, when 18% of the GST was paid, which comes to around ₹23 crore, the project cost exceeded ₹100 crore.
Since the project was implemented under the BOOT (Build Own Operate and Transfer) model, the Kerala government would not give any funds during its implementation stage. It is the responsibility of the contractor company to find the funds due to which we entered into an agreement with other companies. The entire amount sourced by the company has to be paid upfront in the beginning and it will be reimbursed in 20 equal instalments over a period of five years on an annuity basis after the project goes live. Therefore, the interest for the investment will come to around ₹44 crore during this period. Also, with an estimated 10% profit margin for the implementing company, the project cost would be around ₹151 crore.
However, when considering the complete project cost of around ₹235 crore, there is an excess of ₹84 crore in the total outlay.
In fact, it is not our part to explain it. However, since we are engaged in the project, I will explain about this component. Keltron is the agency that owns the project which will later hand it over to the Kerala Motor Vehicles department (MVD) after the agreement period. Keltron will have to field around 150 engineers to man the project for the next five years, and ₹84 crore is the cost required to meet these expenses. People have been raising allegations against us without understanding the various cost components of the project. Further, they have political interests, and this hurts us badly.
What made you bow out of Kerala?
In the last three years, we have not found any labour issues or militant trade unionism in connection with the project implementation, but controversies after controversies stoked by some vested interests dissuaded us from taking up any future projects. We were preparing to take part in an ₹850-crore project which is expected to benefit every household in the State. But in the current milieu, we have decided not to bid for it as it may further sap our energy and precious time.
The companies with which you have entered into an agreement for joint execution in the first stage came out against you.
In fact, we entered into a joint agreement with two companies – Al Hind and Light Master – in the first stage. But we regret the decision as they were behind the controversy to some extent. We did not cross-check the background of these companies as these were introduced by the Kerala-based firm Presidio. Though we know Presidio well, we knew nothing about the other two companies. However, we entered into an agreement with them as their role was only that of a financier. Al Hind voluntarily backed out from the agreement citing technical reasons. But we assume that when the company had realised that it could not change the specs of the engineering components to be procured for the project, which limits their profit to a nominal margin, they backed out. Though they contributed ₹3 crore for paying the security deposit, it will be returned after a certain period, although it is not mandatory to give back the money if the company voluntarily backs out.
Whereas, Light Master could not collect the finances required for the project in the six weeks of the period allotted to them. This forced the two companies to come against us, adding fuel to the controversies by feeding media half-baked truths.
Do you see any political conspiracy?
I do not want to comment more on this. However, the two companies have a clear political leaning in Kerala which we failed to take note of in the beginning.
