Chandigarh, April 9
Decks have been cleared for the much-publicised online lottery in Haryana following negotiations between a high-level official committee and the representatives of five companies who had responded to the Haryana Government’s invitation.
According to informed sources, the high-level official committee, headed by Chief Minister Om Prakash Chautala, zeroed in on Orbit Consortium after “marathon” negotiations for awarding the contract, which will be valid for seven years.
The sources say Orbit Consortium is different from a company having the same name and owned by the family of former Punjab Chief Minister Prakash Singh Badal.
Orbit Consortium has two partners — Jindal Pipes and Orbit Cybertech Limited, Mumbai — who hold the shares in the consortium in the ratio of 40:60.
The sources say the consortium has offered to pay Rs 1141 crore to the state government in seven years or 17 per cent of the turnover, whichever will be more, in addition to the taxes to be paid inside and outside Haryana. It will pay a minimum of Rs 62 crore plus taxes in the first year; Rs 120 crore plus taxes in the second year and Rs 243 crore plus taxes in the third year of the scheme.
M/s Kitchen Appliances India Limited of the Videocon group was a close second in its offer. The company, which had initially offered Rs 814 crore for seven years, agreed to pay Rs 1140 crore after the negotiations. The sources say the area in which Oribit scored over Videocon was the net present value (NPV). While the NPV of Videcon was Rs 708 crore, that of Orbit was Rs 719 crore.
M/s Infotech 2000 India Limited of the Ispat group had offered Rs 1056 crore for seven years. Wilset Investment Private Limited of the Essar group, which had earlier obtained a stay order from the Punjab and Haryana High Court, had offered Rs 570 crore for seven years.
Widescreen Holdings Private Limited of the Zee group had offered merely Rs 300 crore for seven years.
Notwithstanding today’s successful negotiations, it will take at least nine months for Haryana lotteries to go online.
The sources say the consortium would pay a commissioning guarantee of Rs 5 crore within one month of the issue of the letter of intent by the state government. It would be given six months to set up terminals within Haryana and outside the state.
