Question : CRASHING OF WARNING SYSTEM

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI HUKUMDEO NARAYAN YADAV)

(a) to (d): A Project for Early Warning System (EWS) for monitoring of Indian Agriculture was given to M/s Consulting Engineering Services (India) Ltd. New Delhi in September 1999 on the basis of competitive bidding. The main objective of the Project was to carry out close and regular monitoring of the agriculture sector by covering major crops of wheat, paddy, pulses, potato, onion, oil seeds, groundnut, sugarcane and cotton. The total cost of the Project was Rs.16,63,25,000/-. M/s Consulting Engineering Services (India) Ltd. New Delhi was inter-alia expected to provide the following services.

(i)	Collection of ground level information on major crops;

(ii)	Translation of qualitative information into reliable quantitative inferences;

(iii)	Regular and close monitoring of status of major crops on real time basis;

(iv)	Providing weekly feedback on developing situations district-wise, state-wise and at the	national level for making appropriate interventions/policy decisions;

(v)	In addition, M/s Consulting Engineering Services (India) Ltd. New Delhi were required	to submit reports more frequently or on daily basis for any abnormal situation, such as,	floods, drought and pest infection, for any affected area for speedy intervention;

(vi)	Building up of historical data base/warehouse and it`s updation.

The Project commenced in October, 1999. As per the Agreement entered with this Department by M/s Consulting Engineering Services (India) Ltd. New Delhi, a Monitoring team was constituted to examine the reports regularly with reference to the objectives of the project and for giving suggestions for modifications relating to the project. Meetings of the Monitoring Team were held from time to time which noted deficiencies in the services rendered by M/s Consulting Engineering Services (India) Ltd. and the same were intimated to them. It was noticed that the M/s Consulting Engineering Services (India) Ltd. failed to carry out improvements in the quality of the weekly reports inspite of the advice and suggestions given by the Monitoring Team in meetings and by letters. After remaining fully dissatisfied with the performance of M/s Consulting Engineering Services (India) Ltd. New Delhi, the Department of Agriculture and Cooperation terminated the Agreement on 12.2.2001 (Under clause 7.4 read with Clause 3.0 of the Agreement) after giving them a show cause notice.

M/s Consulting Engineering Services (India) Ltd. New Delhi invoked the jurisdiction of the Delhi High Court against the termination. The Hon`ble High Court was pleased to pass an ex- parte Order on 19.2.2001 restraining this Department in giving effect to its order/letter dated 12.2.2001. The Department got the ex-parte decision vacated on 17.10.2001 from Hon`ble High Court. Hon`ble High Court while dismissing the petition allowed the Parties to seek adjudication in the case from a three member Arbitral Tribunal in terms of the Agreement. The case is, at present, before the Tribunal comprising of three members who are retired High Court Judges. The matter is before the Tribunal for adjudication of the case. The matter is, thus, subjudice, at present.