Modi Govt pays Rs 500 crore to major global consultancies in five years: Report
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New Delhi: Key ministries in the Modi-run Central government have committed a hefty sum of Rs 500 crore to five major consultancy firms for various projects, including the Aadhaar initiative, between April 2017 and June 2022, according to a report published in The Indian Express.
The report, based on information obtained through the Right To Information Act, disclosed that PricewaterhouseCoopers, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, KPMG International Limited, and McKinsey & Company collectively secured at least 308 assignments from the Centre.
Among the 16 ministries involved were Petroleum and Natural Gas, Rural Development, Defence, Power, and Health and Family Welfare. The petroleum sector emerged as the highest spender, outsourcing assignments worth over Rs 170 crore.
Financial due diligence, advisory services, hiring technical consultants, and the evaluation of nominations for e-governance awards were among the diverse range of projects outsourced by the government during this period.
PricewaterhouseCoopers dominated the consulting landscape, clinching 92 contracts valued at over Rs 156 crore. Deloitte secured 59 assignments worth Rs 130.13 crore, while Ernst & Young and KPMG were awarded 87 contracts worth over Rs 88.05 crore and 66 contracts worth Rs 68.46 crore, respectively. American consultancy firm McKinsey received three contracts amounting to Rs 50.09 crore.
The Ministry of Finance has now stepped in, seeking detailed information on consultants appointed by all ministries and departments. The move is aimed at facilitating a "meaningful discussion for allocation of Budget under the professional/office expenses/salary head," according to sources.
An unidentified senior official in the finance ministry expressed concerns, stating, "We have no clear idea of the strength of professionals from outside. There are some departments under which many hundred people work as consultants, and some of them are paid very high."
This revelation raises questions about the government's spending practices and calls for increased transparency in the allocation of funds to consultancy firms for public projects.
