Date:20/01/2007 URL: http://www.thehindubusinessline.com/2007/01/20/stories/2007012003240400.htm

Back BSNL seeks flexibility in procuring telecom gear

Thomas K. Thomas

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New Delhi Jan. 19 With some of its major projects stuck in legal wrangles, Bharat Sanchar Nigam Ltd is seeking flexibility in the way it procures telecom equipment to make it at par with competing private telecom companies.

Currently, BSNL is mandated to undertake a detailed tendering process, which takes almost six months to a year to get finalised. Procedural hassles and multiple rules have hit BSNL's aggressive roll out plans, with a number of contracts put on hold on grounds of alleged irregularities.

"If you want us to be competitive, there has to be a level-field. While we have to go through many rules and procedures, private players sit across the table with equipment vendors and do the deal in a matter of days," said a senior BSNL official.

BSNL's 60-million line cellular project is on hold with Motorola challenging the procedures followed while opening the bids of various equipment vendors. The cellular project is extremely critical for BSNL, as other operators are also embarking on a huge pan-Indian roll out.

The optic fibre cable project being undertaken by BSNL for the defence forces is also under scanner with the Chief Vigilance Commissioner raising questions over the procedures followed in awarding the contract. "In the last five years, most of BSNL's large contracts have been shrouded under one controversy or the other, which has affected the PSU's operations. The delays are costing us a lot. Even the employees are demoralised," said the BSNL official.