Date:05/10/2005 URL: http://www.thehindubusinessline.com/2005/10/05/stories/2005100503980100.htm

Back Submarine batteries tender — HBL Nife says Navy denied it a fair chance

Pratim Ranjan Bose

Kolkata , Oct. 4

THE Hyderabad-based HBL Nife Power Systems Ltd has accused the Indian Navy and Union Defence Ministry of allowing Exide to continue as a "monopoly supplier" of submarine batteries and denying a fair chance to HBL to participate in the tendering process for "procurement of 11 batteries for the period 2005-10 period, an order reportedly worth Rs 105 crore".

In a petition filed with the Delhi High Court, HBL has alleged that though the company had sought approval for participating in the procurement process, it (HBL) was not favoured with a "request for proposal" (RFP) enquiry from the Indian Navy. The denial of RFP (to HBL Nife) is, it has been alleged in the petition, "actuated by mala fide".

Interestingly enough, HBL is also a supplier of batteries (other than submarine batteries) to Navy and the defence sector as such. The company now claims to have developed the ability of manufacturing and supplying submarine batteries. A company spokesperson said, "HBL Nife has received all necessary approvals for manufacturing submarine batteries."

Lone maker: Exide has emerged as the only manufacturer and supplier of submarine batteries in the country following the acquisition of the operations of Standard Batteries, the other such manufacturer, in 1998. Apart from Indian Navy, Exide had also supplied such batteries to other countries.

An Exide spokesperson told Business Line, "Such batteries are the lifeline of the submarines. It takes years from development to get approval for supplying such batteries. Each of these batteries takes at least six months to produce and worth crores of rupees.

"Being the only approved manufacturer and supplier we were gearing up to execute the forthcoming contract, as per their requirement. So far as our knowledge goes, this development will affect our production plan and the Navy's procurement schedule for the immediate future as well."

The company, however, refused to make further comments on the case, in which Exide is not a party.