Telecom PSUs streamline procurement procedures with TEMA

Officials from BSNL and MTNL joined the Minister of Communications and IT to sort out issues with Telecom Equipment Manufacturing Association (TEMA) related to procurement of equipment. BSNL and MTNL, the major purchasers of telecom equipment in the country, have a current procurement requirement of around Rs 15,000 crore annually. 

After prolonged deliberation, both the parties have agreed to codify procurement procedures, which would go a long way in removing uncertainties and making the process transparent.

Some of the highlights of the agreement include reducing the tender processing time from 180 days to 120 days. Accordingly, the bid validity period has been reduced from 210 to 150 days. 

BSNL and MTNL may decide on the methodology to be adopted for procurement taking into consideration the cost, time and business opportunity. Initial 90-95% of the payments to vendors would be made within three weeks of receipt of invoices. It was agreed that the payment position would be reviewed after three months to sort out any issues. 

The PSUs would publish an annual calender of tenders which would be updated monthly to inform the industry about their needs. There will be no change in eligibility criteria once the tender has been floated. The bid security will be two percent subject to a maximum of Rs two crore. If a bidder does not accept the APO (advanced payment order) as per the offer given by him, he will not be eligible to participate in the tender for the same item for one year.

The value of performance bank guarantee has been increased from maximum of Rs one crore as of now to five percent of the total order value. A working group has been formed to study the transition to new technologies in the next five years.

Speaking at the announcement, the Minister for Communications Arun Shourie urged the industry not to make allegations and suspect underhand dealings when their products are not selected. At the same time, the Minister also alerted the media not to fall prey to stories planted by disgruntled industry players just because the order did not materialize in their favor. It is important to investigate allegations before taking them at face value.

CYBER NEWS SERVICE

NEW DELHI