States pull the plug on mega power equipment tender
India: Centre’s plan to procure electrical equipment on a mass scale has been met with resistance from states
The target of the plan to procure electrical equipment under its two flagship schemes is to bring down the cost of power equipment, leading to considerable savings to the state, and to eventually bring down the power tariffs. Even though tenders for the same had been bid out, the plan might not take off because it faced stiff resistance from four states — Uttar Pradesh, Maharashtra, Madhya Pradesh, and Chhattisgarh. These state governments are not willing to follow a uniform norm, because it did not match the specification of the state.
The Union budget for 2016-17 had allocated Rs 5,500 crore (about USD 1.18 billion) for urban power supply and Rs 3,000 crore (about USD 643 million) for rural power supply.
The bidding was held last month for four equipment types: power transformers, distribution transformers, cables and conductors. The Centre had issued tenders for 40 % of the aggregate demand of the country for those equipment. Officials refused to disclose the price and quantity of the tender, as it would stand cancelled now. The procurement was done on the basis of the national aggregate demand. Vendors were also selected, but since they will all lose the tender, the names have not been disclosed.
Source: Business Standard