Thiruvananthapuram: The contract for establishing the AI surveillance system at Rs 232 crore was given to the Kerala State Electronics Development Corporation (Keltron) by violating the government’s guidelines on awarding contracts.

In 2018, the Finance Department had brought in guidelines for such contracts in order to prevent the practice of public sector organizations such as Keltron taking government contracts without producing anything by itself, awarding the work to private companies through sub-contracts and charging a commission. According to the guidelines, public sector organisations and accredited agencies must be either project management consultant or an organization that supplies the equipment by themselves. 

The Finance Department had issued strict guidelines during the first Pinarayi Government (2016-21) that an entity must not function as the consultant and the supplier of the equipment at the same time. 

The Transport Department began the AI camera project the very same year. Still, the proceedings were conducted by throwing the guidelines to the wind in toto. Keltron also supplied the equipment even as it functioned as the consultant. There is a condition that if the equipment is supplied by a company, more than half of it should be manufactured by it. In order to circumvent this, Keltron brought parts of the equipment, including cameras, assembled them and passed them off as its own product.

 Keltron spared long-term maintenance too
 As in the case of many contracts, Keltron attempted to get the contract by exempting it from long-term maintenance. According to the contract, Keltron must carry out maintenance for five years by charging 5% of the contract amount. However, the Transport Department demanded that this period be raised to 10 years. Keltron took the stand that in that case, it should be given 15% of the amount. Finally, the Cabinet decided to fix the amount at 7% and issued the order. However, Keltron is yet to sign this contract. 

There was also the condition that a system to monitor the functioning of the cameras should be made available to the Motor Vehicles Department and that Keltron should be paid each instalment only after this. However, Keltron did not agree to the government’s demand that a dashboard should be established for the Motor Vehicles Department to monitor whether the cameras are functioning.

Kerala Government-undertaking Keltron was awarded the contract for the Safe Kerala project for AI camera surveillance on behalf of the Motor Vehicles Department (MVD). But SRIT, which is based in Bengaluru, gave a sub-contract to another firm named Presidio Technologies Pvt Ltd. Amid claims of graft and political favouritism the Bangalore-based firm SRIT has stated there was no political interference in entering into a contract with Keltro. Its CEO, Kannur native Madhu Nambiar, said in Bangalore that the company was awarded the project after participating in an international tender called by Keltron.