Controversy hits BSNL tender for cables

By Our Special Correspondent

NEW DELHI, MAY 31. As is the case every year, the latest tender for jelly filled cables floated by Bharat Sanchar Nigam (BSNL) appears to be getting embroiled in controversy.

Some of the companies affected by a mid-course correction in tender conditions are understood to be seeking legal opinion. A court case challenging the Rs. 3,500 crore tender for 441 lakh cable km of jelly filed cables (JFC) may adversely affect BSNL's connectivity programme for the year. Earlier, a court case on the award of tenders for fibre optic cables had given sleepless nights to BSNL officials. Even the Communications Minister, Mr. Ram Vilas Paswan, had feared that the target of providing phones might be affected.

A similar fate could happen in the case of jelly filled cables if the dispute is allowed to linger. Interestingly, BSNL officials, posted at Bangalore who should be deciding the issue, have washed their hands of the matter and have proceeded on leave.

At the root of the dispute is the delivery rating (DR) formula. The average delivery rating (DR) announced before the tender opened was 0.9252. This is being revised to 0.9507 after the BSNL found that one of the 43 companies in the fray has closed operations. Though the change may seem innocuous, it has affected the fortunes of many companies.

Delton, Nicco, and M. P. Telelink will be badly affected and some may be forced out of the business altogether. Delton was poised to receive 6.76 lckm under the earlier DR. Now it will get 4.14 lckm if the new DR is accepted. M. P. Telelink could see its orders whittled to 5.33 lckm from 11.32 lckm. On the other hand, the change in DR could lead to some companies such as Himalaya Cables (from 0.16 lckm to 3.56 lckm), Golconda Engineering (from 3.2 lckm to 6.47 lckm) and Sudarshan (1.64 lckm to 3.7 lckm) getting a windfall.

If this confusion was not enough, some companies have even approached the Minister of State for Communications, Mr. Tapan Sikdar, for getting their delivery rating improved. These companies such as Finolex Cables, Nicco Cables and Gujarat Telelinks want their DR to be improved under the force majeure clause because their operations were affected by the earthquake and floods. But their adversaries claim that these companies had received relief earlier and, therefore, they are ineligible for another round of relaxation in norms. There have also been allegations that the DR of some companies have been manipulated.

Companies which could be adversely affected due to the change in DR refer to clause 22 (d), Sec. IV, page 28 of the bid documents which states that ``any modification obtained by supplier on his request made after the date of notice inviting tenders which are in the nature of affecting the existing DR will not be taken into account''.

On yet another occasion, a BSNL tender has become controversial because of the tendency to alter the norms after opening of the tender and favouring some parties in the process.

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