DoT abandons move to blacklist firms

The 12 companies which were issued show cause notices by the f the DoT for indulging in unfair trade practices include Gujarat Opticals, Plasmec, Vikas Hybrid, Bhilai Wires, RPG, Aksh India, Birla Ericsson, Hindustan Cables, Siemens, Himachal Futuristic Communications Ltd (HFCL), Uniflex and Optel.

The Tender Evaluation Committee (TEC) shortlisted these companies few months after the tender opened in May last year. In it report in July last year, the TEC clearly stated that there was evidence of these companies indulging in cartelisation while bidding for the 21,000 route km of the optical fibre cables of the 6, 12 and 4 fibre varieties.

The TEC report also outlined the pattern that had been followed while bidding for the tende. In the 6-fibre category, Gujarat Optical, Plasmec, Vikas Hybrid, Bhilai Wires, RPG, aksh India and Birla Ericsson had all quoted a bid of Rs 96.193 crore, thus emerging as the lowest bidders. The remaining companies – Hindustan Cables, Sterlite, Siemens, HFCL, Uniflex and Optel all quoted a bid amount of Rs 97.093 crore.

In the 12-fibre category the order of these firms reversed. The companies emerging as lowest bidders in the earlier specification now quoted a higher bid at Rs 128.57 crore and the other quoted a lower bid of Rs 127.477 crore. In the 4-fibre category the order reversed once again. What has tilted the balance in favour of these companies is that the DoT subsequently placed orders with these very firms for 10,000 route km in October last year. Even the Law Ministry advised the DoT that after having placed subsequent orders, its move for blacklisting would not have any legal standing.