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Contract terms finalised in consultation with legal advisors

Our Bureau

New Delhi, July 12 Bharat Sanchar Nigam Ltd has asked its legal advisors to give their opinion on the draft response to the queries raised by the IT and Communication Minister, Mr A. Raja, on the cellular contact for 45.5 million lines.

The Minister had asked BSNL to explain why Motorola was disqualified and why the price quoted by the lowest bidder Ericsson was much higher compared with what MTNL paid for its mobile network expansion plans.

BSNL officials said that once the legal experts give their opinion the response will be ratified by the company board before being sent to the Minister. BSNL officials said that the terms of the contract was finalised in consultation with the legal advisors and therefore their view would add to their case in defending the process followed.

The BSNL employees’ union had earlier come out in support of the management’s decision to disqualify Motorola. While Mr Raja had said that it was surprising that Motorola, which was a global equipment supplier, was found unfit for supply to BSNL, the union defended the decision by saying that Motorola had partnered with Lucent, a company which in 2004 had announced its decision to stop supply of GSM core equipment.

The union pointed out that Lucent had failed to service an earlier contract for BSNL. The employees union has given 15 days time to the Minister and the management to sort out the matter before they go for an indefinite strike.

Related Stories:
BSNL union gives 15 days time to resolve contract row
BSNL union supports Motorola’s disqualification
Raja wants BSNL tender reviewed; ‘rates too high’

More Stories on : Telecommunications | Courts/Legal Issues

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