Public Interest is Priority : Vanam Jwala Narasimha Rao

 Public Interest is Priority

Vanam Jwala Narasimha Rao

Telangana Today (21-06-2024)

(BHEL was awarded the contract on nomination basis to overcome the severe power crisis facing TS then. The SC while dismissing a PIL on EMRI-108 observed that State governments were in a better position to implement policies regarding award of ambulance and emergency services) - Editor TT

In his 3500+ words letter, comprising evidence-based content, Former Chief Minister K Chandrashekhar Rao to Justice Narasimha Reddy Commission of Inquiry, strongly defended his Government decision in giving Yadadri Ultra Mega Power Plant’s Construction on nomination to BHEL, a Government Organization, and ascertained that, it was perfectly legal. In the same letter, KCR observed that, ‘Extraordinary Situations require Extraordinary Decisions,’ that meant to overcome the then existing severe power crises, ‘Extraordinary Decision’ was essential.

EMRI Example

In this context, my experience in the most successful EMRI ‘Public Private Partnership (PPP)’ Model with which I was associated for about four years in its formative and developing stages, may be of interest. In India, soon after independence, to overcome the ‘Red-Tape and Indifference’ in Government to serve the citizen better, ‘Public Sector Undertakings (PSU)’ were established. Later, when the Indian Economy was opening up, ‘Joint Ventures’ were formed, but majority of them ended up in breaking very soon, as they failed to produce the expected results. In continuation of these two bad experiences, the concept of ‘PPP’ evolved and steadily gained strength.

PPP concept enabled, an otherwise Public Service, in state funding either totally or partly, and operated through a partnership between Government and Non-Governmental Organizations. The PPP Model for 108 Emergency Response Services (ERS) of Emergency Management and Research Institute (EMRI) is ‘The Best Example’. The vision of EMRI, founded and funded initially, by former Chairman of Satyam Computers B Ramalinga Raju was to provide leadership through PPP framework meeting ‘Global Standards’ in ‘Emergency Management, Research and Training.’

Arrangements between the Government and NGO are governed by long-term and short-term agreements, called the ‘Memorandum of Understanding (MOU)' specifying the obligations of both the parties to deliver within the broad framework of performance indicators and standards. In fact, Several analysis and studies confirmed in unequivocal terms, that a ‘Competitive Process or Tender’ of selecting the Private Partner for PPP framework is less effective than an invited or negotiated partnership. May be this equally holds good in similar other cases too.

PPP Framework

For instance, the erstwhile AP Government, when YS Rajshekhar Reddy was Chief Minister, recognized EMRI, which on its own launched 70 ambulances in 50 towns of AP to cater to 25 million population, as the State Level Nodal Agency, to provide similar services in PPP and signed Memorandum of Understanding (MoU) on 2nd April 2005. There was no Tendering. The Government stipulated that, 108 service would be brought under ‘Rajiv Arogyasri’ Program and the ‘Common Logo’ to be prominently displayed on Ambulances.

With its successful implementation in AP, several state governments, negotiated and on mutual consent, by and large straight away nominated the EMRI, as a ‘Nodal Agency’ under PPP to provide similar services in their states. One or two states followed Tender Process where as a mix of the two methods were followed by few. The ERS expanded initially to more and more states. When I moved on, 11 States had signed MOUs with EMRI and operationalized ERS and many other states were considering the same.

For instance, state governments like Gujarat (Chief Minister then was the present Prime Minister Narendra Modi), Uttarakhand, Goa, Assam, Karnataka, and Meghalaya etc. appointed EMRI as nodal agency straight away, without any formal tender process. A series of negotiations and discussions between EMRI and concerned state, leading to signing MoUs.

Despite not being a ‘Tender Route’, the process was transparent. It all began with visits of either side’s representatives, and discussions between EMRI and concerned State Government’s Representatives. Formal or Informal project proposals including financial implications were exchanged before EMRI was finally nominated, sometimes preceded by ‘Expression of Intention’ mode. Either at the time of signing MoU or launching, invariably, concerned State Chief Minister, and or Health Minister, Chief Secretary and or Health Secretary etc. were present. 

Quality Service

The massive expansion with professionalism and excellence was part of the ‘Nomination Concept.’ Over a period, ‘Delivery of Emergency Health Services to Vulnerable Segments’ improved beyond expectations. Had the Tender Route been adopted, perhaps, this would not have been possible, at least, so speedily. If Tender Route was adopted, ‘Outdated Procedural Requirements’ than meeting beneficiaries’ instantaneous or continuous needs would have taken precedence. Competing to win the deal will lead to quote less to become the lowest bidder. The Government’s prime concern of ‘Quality Service Delivery’ would have been lost. Hence, either prior negotiations with the potential implementing agency or a tender where eligibility conditions are tailor-made or the experience of the implementing agency is preferred than tendering, whenever ‘Public Interest is Priority.’ In subsequent expansion, when Tender Route was followed, the quality of service badly came down as experienced by public at large. 

{While I was in charge of PPP responsible for contacting concerned people beforehand in other states, as part of expansion, the ‘Great Unparallel Foresight’ of that ‘Visionary Chairman’ of EMRI and Satyam Computers, B Ramalinga Raju and ‘Never to Look Back Outstanding Leadership and Managerial Skills’ of the then CEO Venkat Changavalli made all the Huge Difference.}

My experience of handling PPP subjects in a senior position was a proof that ‘Nomination Process’ was much better than ‘Tender Route’ in the ‘Public Interest.’ The ‘Team of Expert Advisors’ from National Health Systems Resource Centre (NHSRC), of Government of India, a decade and half ago, after a detailed study, was all praise for the way it was established, expanded to state after state, with its tremendous popular appeal along with flexibility of PPP Design. It rightly and appropriately endorsed the ‘Nomination Process.’ The team nicknamed 108 Ambulance as ‘ANGEL OF MERCY.’

Interestingly, against this background, a Public Interest Litigation (PIL) against EMRI-108 was filed in Supreme Court of India, which involved allegations against Emergency Management and Research Institute (EMRI) by an organization known as ‘Ambulance Access Foundation India’ in the year 2008. It alleged that a number of states had awarded contracts to EMRI funded by Ramalinga Raju, for running Ambulance and Emergency Response Services without observing proper procedure. The petitioner also alleged that there was no open tender. The petitioner had sought adoption of transparent and fair process in awarding the contracts.

The Supreme Court while dismissing the PIL on November 18, 2010 observed that state governments are in a better position to make and implement policies regarding award of ambulance and emergency services contract. The Apex Court among others, observed that, they are of the considered view, that, the respective State Governments, will be in a better position to examine various issues concerned, upon the specific needs of those states like disease burden, health infrastructure, road connectivity etc. This means the Government in office has the discretion.

Drawing a Parallel

Perhaps, a parallel may be drawn here, in the context of Justice Narasimha Reddy Commission of Inquiry on the alleged power sector irregularities during Chandrashekhar Rao’s tenure, finding fault in giving contract to BHEL for construction of Bhadradri Power Plant. Rao in his letter made it clear, that, Negotiations Committee of Telangana Genco was successful in reducing the expenditure by Rs 400 Crores, for which BHEL, a Public Sector Undertaking agreed, and hence was given the contract on ‘Nomination Basis’ in view of the ‘Dire Necessity of Power.’

If the need in the case of the EMRI to prefer nomination process was the speedy provision of ERS, then in case of Rao’s Government, the essentiality to give the contract to BHEL on nomination basis was the ‘Dire Necessity of Power.’ This is what the Natural Justice perhaps!!! Tender or no Tender, the Administrative Brilliance of Chandrashekhar Rao lead to turnaround in Power Sector making ‘Telangana a Role Model.’  

(The author is an independent journalist)