Govt to clean up telecom tender process

BSNL, the erstwhile Department of Telecommunications (DoT) alone buys telecom equipment worth Rs 15,000 crore every year, and the procedure has not always been satisfactory. Even after DoT’s corporatisation as BSNL, the legacy has continued. Shourie said, ‘‘A transparent procedure for procurement of telecom equipment would be framed and placed on the internet along with a rolling calender on tenders for six months.’’

Shourie said provisional pricing, which was in practice and took time to be finalised, would also be addressed soon. On the issue of expansion of cellular operations of BSNL and related tendering process, Shourie said in such cases to keep up the momentum, the PSU should go for limited tendering for limited amount with existing suppliers.

‘‘BSNL’s expansion of cellular services has been rapid in the recent past. If they start tendering, the process will take one year and we don’t want them to lose momentum,’’ he said.

About increasing the foreign direct investment (FDI) cap in the telecom sector, Shourie said the telecom secretary was in touch with other ministries on the matter.‘‘The FDI issue would now be discussed by a committee of secretaries,’’ he said. ‘‘It was discussed that there can be a distinction between holdings of individual companies which are in telecom sector and that of foreign institutional investors (FIIs),’’ Shourie said, adding that this view was taken as it was felt that FIIs would not be interested in management control of the company.

On the recent policy notification relating to mergers and acquisitions, Shourie said, ‘‘In all countries, there has been a consolidation in this sector.’’

On the DoT’s move to restrict acquisitions within a telecom circle, Shourie said, ‘‘It was a matter to be balanced. Restrictions have been put so that there is enough competition in the sector.’’

To tackle outsourcing restrictions, Shourie said concerted efforts were on to counter the moves of the United States, Germany and other European countries to restrict outsourcing of IT services to India. While the government had taken up the issue with the countries through its embassies, his ministry had asked Nasscom and the Indian industry to mobilise the beneficiary foreign companies to put pressure against such moves by their governments.