The Telecom Equipment and Services Export Promotion Council (TEPC) has alleged that state-owned BSNL floated a tender to lay submarine fibre cable between Kochi and Lakshadweep Islands with guidelines that restricted the participation to just one firm.
In a letter to S. Gopalakrishnan, additional secretary, Prime Minister’s Office, the TEPC, which was set up by the government to promote and develop export of telecom equipment and services, said that “restrictive eligibility conditions” of the tender allowed only NEC India to bid for the project.
The project to enable submarine optical fibre cable connectivity between Kochi and Lakshadweep Islands (KLI Project) was approved by the Cabinet in December 2020, with an estimated cost of ₹1,072 crore to be funded by the Universal Service Obligation Fund. The project is targeted to be completed by May 2023.
“In this instant project, by adding Repeatered section, which is only 15% of the total project length, the purchaser has ensured that only three multinational companies could bid,” the letter dated August 31 said, adding that these three work in their own regions with NEC working in Asia.
“Therefore, by adding a single Repeatered section, BSNL has ensured that no competitor, either from India or any other country, could bid in the tender,” it said.
According to TEPC, the Empowered Technology Group has raised objections to the ‘Repeatered segment’ being added, while TCIL — the technical consultant for the project, along with many bidders, had pitched for repeaterless systems.
“DoT and BSNL were very well aware about the fact that there are many Indian companies interested and capable to to execute the project at 30% less price as compared to NEC; however, terms and conditions of the tender was such that all disadvantages of any three would be easily ignored and other companies are unable to bid.”
It added that NEC India was the sole bidder for this project and has been awarded similar submarine cable projects twice earlier.
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