Business Standard

BSNL protest on Madhya Pradesh’s smart cities tender

- SURAJEET DAS GUPTA

Government-owned Bharat Sanchar Nigam (BSNL) wants revaluatio­n of its technical bid for the Madhya Pradesh government’s ‘smart city’ project, for a tender to build command and control centres, as well as integrated data and disaster recovery centres, in seven cities. At present, the award is reportedly likely to go to US-based HP Enterprise­s (HPE).

In a letter a few days earlier to the chief executive of Bhopal Smart City Developmen­t Corporatio­n Ltd (which issued the tender on behalf of all the cities), BSNL contends the technical evaluation was belowpar as far as its performanc­e went, in proof of concept and the technical proposal. “BSNL looks at this as a serious deviation from considerin­g and giving equal opportunit­y to a central government public sector enterprise,” went its letter.

Also, it says HPE, in partnershi­p with Pricewater­houseCoope­rs (which was also appointed a consultant to the MP government’s project), is setting up a centre of excellence in Kolkata to jointly build a smart city platform for global smart city opportunit­ies. It says “there is high probabilit­y that this partnershi­p has worked in their favour”.

BSNL has also argued that HPE has quoted a price which is ~24 crore more than the lowest price offered by BSNL (the lowest bid was ~275 crore). Copies of the letter were also sent to the state government’s chief secretary and to the secretary, electronic­s and informatio­n technology, of the central government, beside the mission director of the Centre’s smart cities project.

Leading Indian companies — including Wipro, Larsen & Toubro, Tech Mahindra and UST Global — had participat­ed in the bids for setting up the infrastruc­ture in Bhopal and Indore, among other citiess. A Prive Waterhouse spokespers­on said: “This is an ongoing client engagement. We do not comment on specific client engagement­s.”

A spokespers­on of HPE said: “HPE has a long and successful history in India and HPE has delivered the technology and services required for major smart city projects around the world. While we cannot comment on confidenti­al details of our commercial tenders. HPE adheres to high standards of business conduct.”

BSNL says it was positioned fifth in the technical score, though it gave a nodeviatio­n certificat­e as required by the tender and was able to answer every query raised by the evaluation committee. BSNL had a consortium with Fluent Grid and Hitachi, which together bid for the project. It says Hitachi’s command centre is one of the most robust of systems and they’re already implementi­ng the command control centre for the Andhra government. While Fluent Grid has already implemente­d a pioneering and largest commercial system for power utilities on the cloud, serving 10 million customers in Uttar Pradesh. Those involved in the tender says the winning bid was to be decided through a fairly new method of evaluation, called a quality cost basis system. Under this, there are much more points and weightage for the technical evaluation than for the price.

Under this system, the winner does not have to match the lowest price . “We would have been okay if the winner (bid) was based on the assumption that it was better in quality and technical parameters, and was asked to match the lowest price or L1. In this case, it is not and that seems a worrisome trend,”says a senior executive of a company which had also bid for the project.

 ??  ?? Complains to Centre and state that its joint bid with Hitachi and Fluent Grid is being unfairly downgraded in favour of HPE
Complains to Centre and state that its joint bid with Hitachi and Fluent Grid is being unfairly downgraded in favour of HPE

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