Free laptop scheme: UP govt owes HP Rs 900 crore

Four months after the Uttar Pradesh chief minister Akhilesh Yadav began distributing free laptops to students, it now turns out that Hewlett Packard, the supplier, has not been paid for more than 5 lakh laptops it has so far delivered. With a Rs 900-crore bill pending, HP has threatened to stop further supplies till dues are settled, government sources said.

In June 2012, the Samajwadi Party government had announced a budget of Rs 2,721.24 crore for distributing tablets and laptops tomeritorious students of classes X and XII. Of this, while Rs 400 crore was earmarked for tablets, the remaining was to be spent on laptops.

But funds got entangled in red tape and only Rs 312 crore was released into the accounts of district magistrates, who, in turn, are responsible for releasing funds to HP representatives in districts. Even this amount, though, has not been paid in full. "There is no clarity on why there is a in the release of funds. The government has already allocated the funds.that is needed is an order for its release," a senior government functionary said.

So far, UP has taken delivery of 5,19,600 laptops, running up a total bill of Rs 998.41 crore, according to senior government sources. According to the contract inked with HP, the government is liable to pay 90% of the total cost at the time the laptops are delivered. This amount touches Rs 900 crore.

In addition, while 5% will be paid after the company finishes conducting the training and demonstration to teachers and students at tehsil or school levels, the final 5%, the contract mandates, must be settled after a one-year maintenance period.

Of these, 79,491 have been distributed to beneficiaries. HP has also created an additional inventory of 1,41,866 laptops that can be made available to the state government immediately once a purchase order is issued. Though the complete distribution pattern of the computing gadgets had to follow a seven-month delivery schedule, HP has met the delivery targets of ahead of time.

In fact, with the rate of delivery far exceeding the rate at which the gadgets are being distributed, the company has also raised concerns about the availability of storage space for the laptops.

When contacted, HP officials confirmed delivery of more than 5 lakh laptops. They, however, refused to comment on pending payments.

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