Thiruvananthapuram: State governments are increasingly taking the services of consultancy firms owing to the demand for top-notch professional services. Even in Kerala where privatisation and contract services are touchy topics, consultancies with global roots are making their presence felt. Even Leftist governments, as the one in Kerala, roll out the red carpet for the likes of PricewaterhouseCoopers (PwC) and KPMG. The role of private agencies associated with the government are now under a cloud after it emerged that an accused in the sensational gold smuggling case was placed in a Kerala government undertaking by the PwC.
In Kerala, consultancy firms are increasing their hold even in the power sector as projects worth thousands of crores of rupees are being implemented. Information Technology sector has been a favourite destination for major global consultancies considering the need for cutting-edge services and products.
International firms such as the KPMG have been given key tasks with good remuneration. The state electricity board, KSEB, even allotted a room for the KPMG at its headquarters for consultancy works.
Another consultancy firm PricewaterhouseCoopers (PwC) has also approached the Kerala State Electricity Board, seeking to take up the task of filing the replies to the Kerala Electricity Regulatory Commission and at the High Court.
Such private agencies operate by recruiting retired officials of the board.
The KPMG was recruited as the project management agency for the Centre's Integrated Power Development (IPDS) on October 13, 2016. The firm was paid Rs 60 lakh for 21 months. After the contract period expired in October 2018, it was extended till November 2019. The firm came up with a Rs 42.64-crore project, to consolidate all services, including billing, on to a single platform.
Though the KSEB officials decided to do this by themselves, the KPMG was again recruited for other tasks. And it was paid Rs 3.34 lakh for 10 months. During this period, the KPMG was allotted the room at the Vydyuthi Bhavan, the KSEB headquarters.
A Netherlands-headquartered consultancy firm, KPMG operates in 147 countries.
PwC too
The electricity board had sought the permission of the Regulatory Commission to spend Rs 2,527 crore for transmission and Rs 4,475 crore for power distribution. The Regulatory Commission had tasked the PwC to review this in March 2019. The remuneration was Rs 12 lakh for two months. This was later extended till March.
The PwC, however, mooted Rs 2,899 crore for the transmission project instead of the Rs 2,527-crore proposal that the board had submitted, i.e., an increase of 14.7 per cent. This proposal includes the controversial TransGrid project.
The PwC also approved the Rs 4,475-crore project submitted by the board in the distribution sector. The money invested in this four-year project in the distribution sector is equal to the total investments that the board has made since its formation.
During this period, the PwC approached the board, seeking to help in filing responses to the Regulatory Commission, Central Commission and in the High Court. Though they have submitted the templates of the tenders invited by Madhya Pradesh, Bihar and Haryana governments, the board is yet to agree.
