Available for a song: GU convention centre
Finance panel has approved the quote of Rs 7.5 cr a year by Gandhi Associates even though only the exhibition hall of the incomplete complex fetched Gujarat University Rs 6.4 cr last year; now the convention centre and two seminar halls also are ready and can earn revenue
Yogesh Avasthi
Posted On Wednesday, May 16, 2012
(http://www.ahmedabadmirror.com/article/2/201205162012051602543970661e2a3b2/Available-for-a-song-GU-convention-centre.html)
By giving away its swanky convention centre to a private agency for a paltry annual fee of Rs 7.5 crore Gujarat University has raised the eyebrows of many.
People in the know express surprise and smell a rat as the finance committee has approved the deal though the university earned Rs 6.4 crore by letting out the complex for only 28 events last year when the complex was even not fully functional. Now, apart form the huge exhibition hall, the sprawling convention centre and two seminar halls are ready for use.
However, justifying the move, Vice Chancellor Parimal Trivedi said the decision was taken by the syndicate following a tender process. “This is the best deal we were offered. The university stands to gain as we will earn Rs 7.5 crore per annum while the centre will be maintained by the winning party, Gandhi Associates.”
The difference between the winning bid and the second best was a huge Rs 3 crore. Besides, the university will also get Rs 1 crore for the use of the huge ground, Dr Trivedi said.
According to Pro-Vice Chancellor Mukul Shah, “Seven firms participated in the tender process. The quotes were opened in front of university finance committee members. Gandhi Associates’ offer was the best. It had quoted an assured sum of Rs 7.5 crore per annum while taking care of maintenance of the complex,” said Dr Shah who is a member of the committee.
Dr Trivedi claimed that university officials, including Senate and Syndicate members, had been discussing the possibility of handing over the convention centre to a private party for management and maintenance.
The idea was that the university would get a certain amount every year while the party awarded the contract would take care of getting business for the huge centre, he said.
Incidentally, in a reply to an RTI application by Ahmedabad Mirror in February this year, the estate department had revealed that the university had earned as much as Rs 6.41 crore by letting out the centre for only 28 events in 2011.
Though the reply showed inconsistency in rentals charged from various parties over the years, the university earned more than Rs 2.5 crore by letting it out for 11 events whereas the revenue in 2009 was Rs 1.43 crore from nine events, making the cumulative earning of Rs 10.41 crore since 2009.
All this without any publicity and marketing for the convention centre where only the exhibition hall was functional.
Said Prof Ramakant Shah, former professor at H A College, “The current university administration is known for its irregularities. I haven’t seen the documents, but if the figures are as you say, then the deal smacks of corruption.”
Senate member Manish Doshi said that the university must reassess the revenue potential of the centre and float tender afresh to get a better return on its investment.
“My understanding is that the centre has the potential of earning three to four times more from the convention centre. The university earned so much when only the exhibition hall was functional. Now the entire convention centre including the seminar halls are ready for use and they can also be rented,” he said.
Charging Dr Trivedi of not maintaining transparency, Doshi said that the revenue earned from the convention centre was never shown in the university budget. “There is no transparency in the entire process. If the letting out of the convention centre were handled professionally, the university could have earned crores of rupees more in these years. The university must reassess the revenue potential of the centre and float tender again to get a better return on its investment,” he said.
The university has pumped about Rs 60 crore into creating the convention centre complex on the piece of land which is valued at more than Rs 100 crore.
Yogesh Avasthi
Posted On Wednesday, May 16, 2012
(http://www.ahmedabadmirror.com/article/2/201205162012051602543970661e2a3b2/Available-for-a-song-GU-convention-centre.html)
By giving away its swanky convention centre to a private agency for a paltry annual fee of Rs 7.5 crore Gujarat University has raised the eyebrows of many.
People in the know express surprise and smell a rat as the finance committee has approved the deal though the university earned Rs 6.4 crore by letting out the complex for only 28 events last year when the complex was even not fully functional. Now, apart form the huge exhibition hall, the sprawling convention centre and two seminar halls are ready for use.
However, justifying the move, Vice Chancellor Parimal Trivedi said the decision was taken by the syndicate following a tender process. “This is the best deal we were offered. The university stands to gain as we will earn Rs 7.5 crore per annum while the centre will be maintained by the winning party, Gandhi Associates.”
The difference between the winning bid and the second best was a huge Rs 3 crore. Besides, the university will also get Rs 1 crore for the use of the huge ground, Dr Trivedi said.
According to Pro-Vice Chancellor Mukul Shah, “Seven firms participated in the tender process. The quotes were opened in front of university finance committee members. Gandhi Associates’ offer was the best. It had quoted an assured sum of Rs 7.5 crore per annum while taking care of maintenance of the complex,” said Dr Shah who is a member of the committee.
Dr Trivedi claimed that university officials, including Senate and Syndicate members, had been discussing the possibility of handing over the convention centre to a private party for management and maintenance.
The idea was that the university would get a certain amount every year while the party awarded the contract would take care of getting business for the huge centre, he said.
Incidentally, in a reply to an RTI application by Ahmedabad Mirror in February this year, the estate department had revealed that the university had earned as much as Rs 6.41 crore by letting out the centre for only 28 events in 2011.
Though the reply showed inconsistency in rentals charged from various parties over the years, the university earned more than Rs 2.5 crore by letting it out for 11 events whereas the revenue in 2009 was Rs 1.43 crore from nine events, making the cumulative earning of Rs 10.41 crore since 2009.
All this without any publicity and marketing for the convention centre where only the exhibition hall was functional.
Said Prof Ramakant Shah, former professor at H A College, “The current university administration is known for its irregularities. I haven’t seen the documents, but if the figures are as you say, then the deal smacks of corruption.”
Senate member Manish Doshi said that the university must reassess the revenue potential of the centre and float tender afresh to get a better return on its investment.
“My understanding is that the centre has the potential of earning three to four times more from the convention centre. The university earned so much when only the exhibition hall was functional. Now the entire convention centre including the seminar halls are ready for use and they can also be rented,” he said.
Charging Dr Trivedi of not maintaining transparency, Doshi said that the revenue earned from the convention centre was never shown in the university budget. “There is no transparency in the entire process. If the letting out of the convention centre were handled professionally, the university could have earned crores of rupees more in these years. The university must reassess the revenue potential of the centre and float tender again to get a better return on its investment,” he said.
The university has pumped about Rs 60 crore into creating the convention centre complex on the piece of land which is valued at more than Rs 100 crore.
