The Prime Minister?s Office (PMO) has distanced itself from a request by communications & IT minister A Raja to allow state-owned BSNL to award its 93-million line tender, which is held up due to an enquiry by the Central Vigilance Commission.
In a reply to Raja?s letter seeking award of the tender, the PMO is understood to have replied that the CVC is an independent statutory body and should be allowed to do its work without interference. According to sources, the PMO also said the CVC works according to clear guidelines.
The development could prove a major setback to Raja, who had written to the PM that corporate rivalries were behind the scuttling of BSNL?s Rs 36,000-crore tender, which was vital for its expansion plans. Making a case for allowing BSNL to go ahead with its network expansion plan, Raja had written that post-tender negotiations had led to a substantial reduction in equipment prices.
Regarding the CVC guidelines prohibiting post-tender negotiations, Raja had written, ?The CVC guidelines do not rule out negotiations with L1 (lowest bidder) under exceptional circumstances?. Raja had also stated in his letter to the PM that in case the tender was scrapped and a new one floated it would also meet the same fate, as BSNL?s corporate rivals would once again level allegations.
Raja did not take calls from FE for this article, nor did he reply to an SMS query.
Meanwhile, sources said the CVC has completed its probe and submitted its report to the department of telecommunications, clearly stating that since there had been irregularities, the tender should be scrapped and a fresh one called. When contacted, CVC chief Pratyush Sinha told FE, ?I can only comment by Monday.?
As first reported by this newspaper, the post-negotiation tender price was 130% higher than BSNL?s estimated price. The issue came to light when, on December 21, government nominee on the BSNL board JS Deepak submitted a note of dissent, stating that the 93-million line capacity be halved and post-tender negotiations not be held.
CVC guidelines allow for post-tender negotiations only in two cases: in the supply of proprietary items, where there is no other suppler; or when the forming of a cartel is suspected. In the case of the BSNL tender, neither condition applies.
Deepak had suggested that BSNL?s falling marketshare and revenues did not warrant a tender of such magnitude so the company should re-tender for a smaller number of lines. To meet any contingency, the company could approach earlier vendors, he said.