Tender Row Rocks Govt Institutions

Centralized student supply tenders trigger corruption and corporate favoritism allegations

metro india news  I hyderabad

The Telangana government’s decision to introduce a centralized procurement system for supplying materials to students in Gurukul institutions, residential schools, and welfare hostels is now drawing serious allegations of irregularities and backdoor dealings. While the government claims the move was aimed at reducing corruption, price variations, and poor-quality supplies at the district level, criticism is mounting that the implementation itself has become controversial.

The government recently floated tenders worth nearly Rs 1,800 crore to supply 22 categories of items to over 9.24 lakh students studying in Minority Gurukul institutions, Social Welfare, BC Welfare, Tribal Welfare, Kasturba Gandhi Balika Vidyalayas, Model Schools, Ashram Schools, and various welfare hostels across the state for the 2026 academic year.

The items include trolley bags, trunk boxes, uniforms, ties, belts, blankets, socks, school bags, notebooks, rugs, mats, PT dress, night dress, and track suits. Earlier, procurement was handled district-wise. The government argued that decentralized purchasing was leading to quality issues, supply delays, price discrepancies, and large-scale corruption, causing financial losses to the state exchequer. To address this, a centralized Project Monitoring Unit (PMU) was established to oversee common procurement at the state level.

However, allegations have now surfaced that the tender conditions were designed in a way that effectively excluded Telangana-based manufacturers, suppliers, and MSMEs. Critics allege that the eligibility norms were tailored to benefit a few large corporate firms from other states. 

Questions are also being raised over the alleged violation of central government guidelines, which reportedly mandate 25 per cent participation for SC and women entrepreneurs in such contracts.

Sources indicate that the government is preparing to hand over the entire procurement process to two or three Gujarat-based corporate companies. Agreements are expected to be finalized within days. Allegations are also emerging that nearly Rs 500 crore could change hands in the process through inflated pricing and hidden arrangements.

Critics point out that while the government usually fixes standard rates for products in advance, no such pricing framework was finalized before these tenders were called. As a result, bidders allegedly quoted prices that are 25 to 35 percent higher than expected. Political and administrative circles are now openly discussing allegations that the contracts were effectively secured by select Gujarat-based firms with the backing of influential figures in the government.

The controversy has also reportedly triggered unease among senior IAS officers. Discussions within bureaucratic circles suggest that some officials sensed irregularities in the tender process from the beginning. The senior IAS officer serving as PMU chairperson and Secretary of the SC Gurukul Society is reportedly said to have gone on leave after observing developments around the tender process. Subsequently, the government allegedly moved quickly to place a Group officer in charge to complete the process.

Officials are said to be wary that any future change in government could bring scrutiny over the tender allocations and financial transactions linked to the contracts. This fear is reportedly making several senior officers reluctant to associate themselves with the procurement process.

Despite the scale of the allegations, neither ministers nor senior bureaucrats have publicly responded. Political circles are discussing what they describe as an atmosphere of silence and hesitation within the administration, with many preferring to stay away from the issue altogether.

Meanwhile, intellectuals and policy observers are suggesting an alternative approach. Instead of centralized bulk procurement, they argue that the government should directly transfer the cost of uniforms and other materials into students’ bank accounts through a Direct Benefit Transfer (DBT) system similar to Rythu Bandhu.

They say such a move would not only reduce corruption allegations but also benefit local traders, textile suppliers, tailors, uniform makers, and small businesses across Telangana. According to them, a DBT-based system could generate employment opportunities for nearly 2,000 MSMEs, SMEs, and small-scale suppliers in the state while ensuring transparency and local economic growth.

Demands are now growing for the government to cancel the present tenders and conduct the process again in a transparent manner that gives equal opportunity to Telangana-based enterprises instead of favoring large corporate firms from outside the state.

Tender process ‘rigged’: Dasoju Sravan

BRS MLC Dasoju Sravan Kumar launched a sharp attack on the Telangana government over the centralized procurement system in the Education Department, alleging that it was designed to favor select companies while destroying local businesses and handloom workers.

He said procurement for welfare schools and hostels was earlier handled through a decentralized system under district collectors, allowing local MSMEs, Padmashali weaving families, tailors, steel industries, and small businesses to participate. According to him, the government later replaced this with a centralized Project Monitoring Unit (PMU) system to control contracts worth thousands of crores.

Dasoju alleged that impossible tender conditions were deliberately introduced to block local suppliers. Uniform material suppliers were reportedly asked to show Rs 250 crore annual turnover, notebook suppliers Rs 150 crore turnover, along with solvency certificates worth Rs 2 crore to Rs 4 crore. He said these rules excluded small manufacturers and local enterprises.

He also questioned how companies were asked to quote prices for items like trolley bags, blankets, and PT dress before final designs were even decided. Further, he alleged that the government failed to fix base prices before floating tenders, allowing companies to inflate quotations. The BRS leader accused the government of bypassing GO Ms No.1, which mandates cloth-related procurement through Telangana State Handloom Weavers Cooperative Society Limited (TESCO/TGSCO) to protect nearly 40,000 handloom families. Referring to a High Court ruling, he claimed the court had already directed procurement through TESCO. Dasoju demanded immediate cancellation of the tenders and warned that BRS would approach vigilance agencies and courts over the alleged irregularities.