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Thomas K. Thomas

New Delhi, Aug. 25 The two-member independent panel investigating the tendering process followed by Bharat Sanchar Nigam Ltd in awarding the 93 million line GSM tender has given a clean chit to the public sector company. The panel was set up by BSNL after Nokia Siemens complained to the Central Vigilance Commission alleging malpractice in the tendering process. Nokia Siemens was disqualified by BSNL on technical grounds and was not allowed to bid for the mega project worth Rs 30,000 crore.

The report submitted by the panel comprising former CVC officials — Mr T. S. Krishnamurthy and Mr B. B. Tandon — has backed the process followed by the State-owned company in evaluating the applications from various vendors before short-listing Ericsson and Huawei. Nokia Siemens has been given three days to reply to the report, which could be its last chance to swing a decision in its favour.

Nokia Siemens had also filed an appeal in the High Courts of Punjab and Haryana, and Andhra Pradesh. While the Punjab and Haryana High Court had dismissed the case allowing Nokia Siemens to file a fresh appeal in case it is not satisfied with BSNL’s investigations and response, the AP High Court has stayed the contract for the South zone. The Finnish company’s complaint to the Competition Commission of India was also returned on the grounds that the Commission did not have clarity on whether it can intervene in such disputes.

With the independent panel ruling in favour of the BSNL, Nokia Siemens does not have too many options left in bagging this contract except the courts. This could mean that BSNL will be able to award the purchase order to Ericsson for the North zone at least. The PSU is facing shortage in capacity due to the delay in procurement of additional equipment.

More Stories on : Telecommunications | PSU

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