Date:17/07/2007 URL: http://www.thehindubusinessline.com/2007/07/17/stories/2007071751811000.htm

Back BSNL board not for scrapping cellular tender

Our Bureau

New Delhi, July 16

The BSNL board has decided not to go for a re-bid for its 45.5-million cellular line but work around the existing tender.

The board, which met today to discuss the controversial contract, will submit its proposal to the Communications and IT Minister, Mr A. Raja, on Tuesday, who will take the final decision.

“We will await the decision from the Communications Ministry,” said Mr A.K. Sinha, Chairman and Managing Director. He refused to divulge details of the decisions arrived at during the meeting.

However, sources said that the tender may not be scrapped, which could mean that Motorola and ZTE may find it difficult to re-bid for the contract.

The two companies were earlier disqualified from the bidding for not meeting technical specifications.

Mr Raja had asked BSNL to review the contract on the grounds that the price offered by the lowest bidder, Ericsson, was on the higher side.

While Ericsson had quoted $107 per line, Mr Raja had wanted it to be under $100.

The Minister had suggested that BSNL should reduce the number of third-generation cellular lines in the contract in order to bring down overall costs.

Mr Raja had also sought clarification as to why BSNL disqualified Motorola from bidding for the project.

Sources in BSNL said that the board has given its response defending the decision to disqualify Motorola.

They added that the company has sought to go ahead with its initial plan of placing an order for 17.5 million lines in the first phase.