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The tendering process for the procurement of DI pipes by the Haryana Public Health Engineering Department, under a two-year rate contract, poses a significant risk of financial loss to the state. This approach could ultimately be detrimental to the public exchequer and contrary to the best interests of the State of Haryana. While a price variation clause is included in the contract, it does not provide adequate protection against fluctuations in market dynamics. A clear example of this risk materializing can be seen in the Rate Contract no. 99/HR/RC/E-2/2023-24/4256-59 dated 17.07.2024 w2hich was valid up to 17.07.2025. In this instance, DI pipes worth nearly 800 crores were procured at inflated prices in February 2025 on the above Rate Contract. The rate, according to the Rate Contract under the PVC formula in case of 100mm (K-7) dropped from Rs. 1260 to Rs. 1157 per meter, while the rate in the new tender opened next month on 28.03.2025 dropped to 1085 per Mtr. So it is clear that the rates had fallen drastically and in some sizes by nearly 15% and they have purchased pipes at a much higher price as the previous Rate Contract was still relevant (up to 24.07.2025). Engineer-in-Chief, Davinder Dahiya from the Department of Public Health Engineering, Haryana refused to comment on respond to share official version. However, details procured show that even the price variation clause could not save the financial loss of 100 crores. For some reason, this tender was scrapped, and a fresh tender for 2 2-year Rate Contract for the purchase of DI Pipes worth 2800 Crore was opened on 29.08.2025. This was just after the expiry of the previous Rate Contract. The prices in the just-expired Rate Contract were higher by 30% for example, in the previous Rate Contract, 100mm (K-7) prices were Rs. 1157 Per Mtr. after the application of the PVC formula. The new rates at the same time were Rs. 910 Per Mtr. (Difference of 28%). Had the previous Rate Contract been valid for two Years as is being proposed now, the Government would have continued placing orders for another year at nearly 30% higher rates, despite the PVC formula, thus causing a loss of nearly a Rs. 1000 crores. The prices of pipes are falling due to low demand (due to the absence of the JJM project) and the capacities of new & old manufacturers increasing. Where is the wisdom of fixing the purchase price for two years!! The Haryana Government has clearly turned a blind eye to the precious state money and is happily moving towards a loss of nearly Rs. 400 crores every year. Given these concerns, it is clear that a longer two-year rate contract is not in the best interest of the state, as it results in financial losses. Moreover, such a contract structure limits Haryana’s ability to capitalize on emerging manufacturing capacities and competitive market rates, thereby fostering a monopolistic environment favouring a select group of manufacturers. Also, it is common knowledge that when a manufacturer has to commit to supplies over a long period, like two years, he would cushion the prices keeping in view future uncertainties The Public Health Department has an inventory of nearly Rs. 700 crores of D.I. Pipes in their stores and has a liability of a few hundred crores to the contractors and suppliers. Experts suggest that the Department should re-evaluate its approach to long-term rate contracts and go for specific quantity tenders to get more competitive prices and safeguard the financial interest of the state. Advocate & Legal Consultant Gaurav Deep Goel has, in the public interest, written to Nayab Singh Saini, Chief Minister, Haryana, Rajesh Khullar, Chief Principal Secretary, Vipul Goel, Minister & member High Powered Purchase Committe,e and others in this connection.
