MVD mulls new AI camera deal with Keltron to wriggle out of mess

keltron
Keltron official logo

Thiruvananthapuram: Kerala’s Motor Vehicles Department (MVD) has decided to demand a comprehensive agreement with Keltron over the Artificial Intelligence (AI)-based surveillance project in an apparent attempt to evade blame for the alleged malpractices behind the deal.

MVD authorities feel that implementing agency Keltron had flouted all rules by awarding a sub-contract for the project and concealing the matter. 

According to MVD officials, they learnt about the sub-contract only from media reports. Even Transport Minister Antony Raju had passed the buck to Keltron.

In 2018, the Finance Department issued a circular which said that in the event of Keltron awarding sub-contracts for a project, the matter should be conveyed to the respective department. In the AI camera project, even though this condition was violated, the Finance Department had to approve the file as it was included in the 100-day action plan of the State Government and had to be fast-tracked.

MVD officials said that at this stage, they had forwarded the file to the Finance Department four times to confirm that no malpractice was involved. The Finance Department and Chief Secretary also pointed out that all tender procedures were violated during this period.

Meanwhile, top officials, including the Additional Chief Secretary (Transport), engaged in discussions with Keltron. However, Keltron refused to reduce the project cost or change the tender procedures. Subsequently, the Finance Department noted in the file that it would withdraw its objections in the event of the Cabinet approving the project.

Soon, the file was presented before the Cabinet for administrative approval, which was granted on April 18 this year. An official order too was issued in this regard.

Likely face saver 
However, the MVD has now demanded that before Keltron receives the first instalment of the project cost based on this order, ambiguities regarding the tender conditions should be cleared and a final agreement signed. This final agreement has to be prepared after the inquiry under the Principal Secretary (Industries), said MVD sources.

Ironically, Keltron had suggested a BOOT (Build Own Operate Transfer) model to implement the project even though the involvement of MVD officers was mandatory. Curiously, the government had approved this suggestion too. Later, this condition was altered to an annuity scheme, again to benefit Keltron.

Another anomaly was the collection of consultancy fees by Keltron, which awarded the contracts.

At the same time, Keltron had offered free maintenance for five years. When the MVD sought an extension of the service period to 10 years, Keltron demanded 15% payment for maintenance work carried out after five years. Subsequently, MVD wanted this share to be cut to seven per cent, which is yet to be approved by Keltron.

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