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This is an archive article published on January 18, 2010

PSEB refuses fair deal to small units

In gross violation of regulations,the Punjab State Electricity Board (PSEB) has not been allowing small units exempt from paying earnest money to participate in tenders...

Units registered with NSIEC are exempt from paying earnest money to submit tender bids,but the board has not provided concessions for last 3 years

In gross violation of regulations,the Punjab State Electricity Board (PSEB) has not been allowing small units exempt from paying earnest money to participate in tenders floated by it for the last three years. According to the the Government Store Purchase Programme of the Union Ministry of Small Scale Industry,units registered with the National Small Industries and Export Corporation (NSIEC) are exempted from paying any earnest money or security deposit required for participation in the tenders floated by any department. The tender forms,too,are supposed to be given free of cost to such units.

The PSEB’s flouting of rules implies that either the small units pay the earnest money and security to participate,or let go of the opportunities even when the government policy is to encourage them to compete for tenders.

This,even when such units routinely participate in tenders floated by the Indian Railways,BSNL,CRPF and BSF,among other government bodies.

Badish K Jindal,president of the Punjab chapter of Federation of Small Scale Industries of India (FASSI),said,“PSEB invites tenders for nuts,bolts,coils,wires and other raw material every few months. But many units who cannot pay earnest money,and are in fact exempted from paying it anyway,do not get a chance to bag any tender.”

“The exemptions have been discontinued after the SAD-BJP government came to power three years ago,” he added.

Rajeev Jain,General Manager,NSIEC Punjab unit,confirmed that the PSEB has not been providing the stipulated exemptions to small units. “Thousands of units from Punjab have registered with us after paying a one-time fee. Industrialists have complained to us a number of times and we have written to the PSEB and the state government to implement the Union ministry policy,” he said,adding that the NSIEC can only request the state government to take action as the power to act lies with the government,not them.

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So far,no action has been initiated against the board.

R P Bector,Chief Engineer (Material and Management),PSEB,expressed ignorance about the rules providing exemptions to small units registered with the NSIEC,and said,“I don’t know if any such exemption exists,and whether it was discontinued or not. I will have to check the details.”

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