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DoT: Tender process to be streamlined

Communications and IT Minister Arun Shourie on Tuesday launched a 8216;clean-up8217; drive to free his ministry and PSUs under it from the...

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Communications and IT Minister Arun Shourie on Tuesday launched a 8216;clean-up8217; drive to free his ministry and PSUs under it from the accusations of corruption and delays in telecom equipment purchase.

The erstwhile Department of Telecommunications DoT has been dubbed as the department of tricks or tenders for so long that Shourie decided to streamline the tender process.

The tender process has been cut down to 120 days from 180 days reducing the bid validity period to 150 days. 8216;8216;We have codified the telecom equipment tendering process in consultations with the industry, BSNL and MTNL. Now onwards the government would be out of picture in tendering matters,8217;8217; Shourie said here. 8216;8216;All issues relating to tendering would be decided by TEMA Telecom Equipment Manufacturers8217; Association and the individual players,8217;8217; he added.

BSNL and MTNL are largest telecom equipment buyers Rs 15,000 crore annually due to their size and operation and will be allowed to decide the methodology to be adopted for procurement taking into consideration the cost, time and opportunity.

In addition, the two PSUs will now have the flexibility to place repeat orders up to 50 per cent from the earlier 25 per cent of the contract value at the same rate or at negotiated prices within 12 months from the date of acceptance of additional purchase order.

BSNL and MTNL will now have to publish an annual calender of tenders which would be updated monthly, Shourie said. BSNL chairman and managing director Prithipal Singh said the new guidelines would bring in transparency to the industry plagued by inter-company wrangling over tendering, allegations of corruption and grievances.

Shourie said the government is considering giving statutory status to the Universal Service Obligation USO fund. The matter is expected to come up at the Cabinet meeting later this week.

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