BHEL complains to RlyB’d on tender favouring select companies
Another major manufacturer alleged that the tender conditions favour only one selected Indian company
Another major rolling stock and wagon manufacturer for Indian Railways, Titagarh Wagons, has asked the railways to increase the tender submission timeline so that the bids can be more competitive
New Delhi: State-run Bharat Heavy Electricals Ltd (BHEL) has written to the Railway Board saying a recent tender floated by the transporter for the supply of propulsion systems favours select companies.
The Integral Coach Factory (ICF) in Chennai has floated a tender for acquiring propulsion systems for 141 electric trains. BHEL, which has been regularly supplying locos and equipment to the railways, has complained that it is being kept out as the tender favours only three Indian companies. Another potential bidder from the private sector has sought more time.
In a letter to Chairman, Railway Board Ashwani Lohani, BHEL has said this may lead to cost escalation. “BHEL is getting deprived of the opportunity for being considered for bulk quantity in view of the change in eligibility criteria,” BHEL chairman Atul Sobti wrote in the letter.
“In the earlier tender, the qualifying criteria was that the participant should have supplied one AC rake (one train set), which has now been increased to ten,” wrote Sobti, who is also the company’s managing director.
The tender, estimated to be worth Rs 1,200-1,500 crore, opens on November 15.
“I have been told that three parties may be eligible for bulk tender, whereas BHEL, the only public sector company, is getting eliminated. If the conditions are not changed, BHEL will not only be denied a fair opportunity to submit its competitive bid but the reduced competition may also preclude the discovery of the most economical price for Indian Railways,” Sobti said in his letter.
Meanwhile, another major rolling stock and wagon manufacturer for Indian Railways, Titagarh Wagons, has asked the railways to increase the tender submission timeline so that the bids can be more competitive.
In a letter to Sudhanshu Mani, GM/ICF, Titagarh Wagons, said, “We have a feeling that the given timeframe for tender submission is not adequate to prepare a detailed, most competitive and attractive techno-commercial proposal, given the volume of this project. Therefore, we earnestly request to extend the due date of submission by two months.”
Another major manufacturer, who did not want to be identified, alleged that the tender conditions favour only one Indian company.
The manufacturer said it would soon file a complaint with the Competition Commission of India and the Prime Minister’s Office as the tender condition did not fulfil the ‘Make in India’ criteria in entirety.
In February, the department of industrial policy and promotion (DIPP), had raised red flags over a similar tender for the train-set project – which had resulted in a single bidder outcome as a consortium led by rolling stock manufacturer Medha was the sole bidder.
In a letter to the Railway Board, DIPP secretary Ramesh Abhishek had observed that the eligibility conditions set in the train-set tender “prima facie seem to be non-compliant to the public procurement (preference to make in India) order”. The tender was later scrapped.
Courtesy: Economic Times