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Pitroda panel tells BSNL to
scrap controversial tender |
A committee headed by Sam Pitroda,
advisor to the Prime Minister, suggested that state-run telecom major Bharat Sanchar Nigam Ltd (BSNL) scrap its controversial 93-million GSM
lines tender.
The committee said BSNL should change its method of growth
from outright purchase of equipment to lease arrangement. The vendor who would
supply the equipment should be responsible for installation, maintenance and
operations, besides future expansion. Such a contract could run for five years,
it said.
Private telecom companies already follow such a model for
expansion. With this model, BSNL would reduce its capital expenditure, besides
reducing its problem of having a shortage of young trained engineers in the
latest technologies, the committee said.
BSNL should prepare the operational and quality requirements
for the network, along with necessary commercial requirements, as the bid
document in 20 days and no changes would be permissible after the bids have
been received, to ensure transparency, openness and fairness, it recommended.
The BSNL tender issue was referred to the committee headed
by Pitroda (who is advisor to the PM on
infrastructure, innovation and information technology), after a number of
controversies. These ranged from home ministry objections on Chinese equipment
firms to legal battles by disqualified vendors. The committee also had HDFC
Chairman Deepak Parekh and
The hurdles in the project started after BSNL disqualified
three of the five bidders on technical grounds. Ericsson and Huawei were shortlisted, while
Nokia Siemens, Alcatel Lucent and ZTE were disqualified. Nokia Siemens
challenged its disqualification in court.
Further, security agencies said BSNL could not buy telecom
equipment from any Chinese vendor, including Huawei.
BSNL, subsequently, started negotiations with Ericsson for lower prices.
However, the Department of Telecommunications said BSNL may not get the best
price, since there was no competitive bidding.
Source:- Business standard dated 06-03-2010.