Controversy surrounds IIM Ranchi’s mess contract awarded to French company

Ranchi: In a surprising move, the Indian Institute of Management (IIM), Ranchi, known for its prestigious ranking in the country, has awarded the contract for its mess operations to a French company named Sudisco. The move has sparked controversy and raised questions about the prioritization of foreign companies over local ones during the tender process.

IIM Ranchi, ranked seventh in Outlook ICARE’s India’s Best B-Schools-2024 and 21st in NIRF, recently tightened the conditions for companies participating in the tender for operating the mess, requiring an annual turnover of Rs 2000 crore. This condition reportedly led to the exclusion of Indian companies, as none met the specified criteria. The French company Sudisco, being one of the few with such a colossal turnover, secured the contract.

Critics argue that this contradicts the “Local for Vocal” initiative, suggesting that the conditions were intentionally set to favor a foreign company. A company named Jai Baba Basuki of Deoghar has filed complaints with the PMO, Higher Education, CBI, and CVO, urging an investigation into the tender process. Additionally, a case has been filed in the Jharkhand High Court, accusing the institute’s management of corruption.

The tender process, initiated in October 2023, imposed stringent criteria, including a demand for a 1000 percent increase in turnover from the previous year. This resulted in no local companies meeting the eligibility criteria.
Under the new arrangement, the French company will be paid Rs 15 crore more annually than the previous contractor, Jai Baba Basuki. However, the increased cost comes with reduced services, as students will now receive non-vegetarian food only two days a week, compared to the previous five days. Moreover, there are concerns about the absence of a system on campus to monitor the quality of food.

Previously, the annual budget for mess operations was approximately Rs 5 crore, but under the new contract, it has surged to Rs 20-22 crore. This substantial increase will directly impact the students, who will have to bear the additional financial burden.