Date:27/12/2007 URL: http://www.thehindubusinessline.com/2007/12/27/stories/2007122751650300.htm

Back ‘Vendor rating’ to help power utilities

This benchmarking would greatly assist the utilities by making the selection of the vendor more objective and realistic than looking at just one parameter – the lowest price bid for tender.

Rahul Wadke

Mumbai, Dec 26 Large power utilities will have easier tender process and evaluating electrical vendors would be further simplified with the introduction of ‘vendor rating’ that is being jointly developed by Indian Electrical & Electronics Manufacturers’ Association, Crisil and Lloyd’s Register.

Indian Electrical and Electronics Manufacturers Association (IEEMA) is the national organisation of 550 manufacturers of electrical, electronics and allied equipment.

The ratings would help the utilities in selecting only those vendors who are capable of delivering on project timelines.

Crisil and Lloyd’s Register Quality Assurance, a certification body and subsidiary of Lloyd’s Register, would certify the financial health and technical competency of the vendors.

Talking to Business Line, Mr Sunil More, Director-General of IEEMA, said that the association has been getting feedback from utilities and its members to develop means to benchmark the members based on their technical and business capabilities.

This benchmarking would greatly assist the utilities by making the selection of the vendor more objective and realistic than looking at just one parameter – the lowest price bid for tender, he said.

The rating process is still at a pilot stage and it is non-mandatory for the members. The association has roped in 10 electrical meter manufactures to be the part of the pilot. Companies manufacturing electrical cables have also shown interest in getting rated.

Mr More said that the rating is an opinion on the strength and sustainability of operations of the company. The opinion is based on an evaluation of the entity’s financial strength, management quality, quality of the production process and the potential to produce high quality products, he said.

He said that once the vendors get rated it would become simpler for the utilities to filter the vendors. The utilities are also assured that once the tender is awarded the vendors will adhere to the delivery schedule, he said.