'ICT3 launch delay caused Rs 109-crore loss'

Bengaluru: Delay in implementing the Information and Communication Technology (ICT) Phase 3, a major project, at government and aided schools by the department of school education and literacy, has led to a financial loss of Rs 109 core to the government. 

The Public Accounts Committee, headed by senior legislator C C Patil, has expressed displeasure over the way the school education department handled the project and stated, “Delay in implementing the project resulted in locking up of government funds and cost overruns.”

The committee, in its report placed before both the houses in the ongoing winter session, stated that despite objections raised by the Comptroller and Auditor General of India about the department’s inefficiency in implementing the project, the department took 10 years to appoint an inquiry officer.

“Though the case was brought to light in 2013-14, the department constituted an inquiry commission only in 2023. The committee has taken this delay by the department seriously,” reads the report. 

Meanwhile, the committee submitted the report on November 2023 and held the then principal of DIET Bengaluru Urban responsible for the delay in implementing ICT 3 while he was working as special officer of the department and also as the Under Secretary to the Department in 2010 -11.

Following the report, the department even constituted another committee headed by retired district and sessions judge S S Sarang Mutt as special investigating officer. The report is expected to be out. 

Interestingly, the department cannot initiate action against some officials though their involvement is proven as they have retired from service.

When the department sent charges against former MD of Keonics to the Department of Personnel and Administrative Reforms, it said, “There is no provision to initiate action on retired officials.” The committee expressed unhappiness over such policies.  

With the department of School Education and Literacy not taking the case seriously and failing to act on lapses in implementing ICT 3, the committee said over Rs 1,000 crore worth arbitration cases are pending in courts. “In one case, court had ordered the department to pay Rs 11.54 crore. The department has already deposited 75% of that,” the committee said. 

Following this case, the committee had recommended removal of the compulsory arbitration clause from tender contracts. The committee has recommended disciplinary action on officials responsible for delay in implementing the project and recover loss.  

ICT is a centrally sponsored scheme. In 2008-09, the department of school education research and training decided to implement ICT phase 3 at 1,763 government and 2,633 aided high schools. The Centre had also approved Rs 426.68 crore for it in Aug 2009. 

Following the government’s decision to hand over implementation to Keonics, DSERT had requested Keonics to submit reports. But as it didn't respond, DSERT purchased batteries, projectors, UPS and mini printers from companies which have DGS&D contracts worth Rs 89.52 crore. This led to locking up of funds as purchase was made even before implementation. The department had spent Rs 73.64 crore on site development, internet, etc.