BSNL's KLI project tender restricts local players participation: TEPC

Government-supported body TEPC has alleged that a tender floated by state-run BSNL to connect Lakshadweep Islands with Kochi through submarine cable restricts participation of both Indian and foreign companies, except one.

The KLI submarine cable connectivity project was approved by the Cabinet in December 2020 with an outlay of Rs 1,072 crore, and is expected to be completed by May 2023.

The Telecom Equipment and Services Export Promotion Council (TEPC), a body created to support local telecom gear makers, in a letter to the Prime Minister's Office on August 31 claimed that there are many Indian companies interested in the project and are capable too to execute the project at 30 per cent less price as compared to the foreign vendor NEC which has placed bid for the project.

"TEPC requested, time and again, about the restrictive eligibility conditions stipulated in the aforesaid tender which are somewhat softened, however, not to the extent that any Indian company or any other foreign competitor, except NEC India, could bid in the project," TEPC said.

Email query sent to the DoT and NEC did not elicit any reply.

The tender includes repeater based technology which according to domestic industry body TEMA is available only with select players.

"...by adding a repeated section, which is only 15 per cent of the total project length, the purchaser has ensured that only three of the multi-national companies could bid in the tender. However, the said three companies normally work in tandem or in other words, they work in their own regions ie NEC works in Asia whereas other two companies don't bid in Asia," the letter alleged.

The DoT in an Empowered Technology Group (ETG) meeting in October 2020 had justified using a repeater base system as it allows modular repair and has better transmission power. According to TEPC, ETG had objected to the use of a repeater based system as it adds to cost.

TEPC said that NEC India is the sole bidder for the project and has been awarded twice similar submarine cable projects.

TEPC said that it takes three to six months for the repair of the repeater based cable system and repeaters are bought in advance which will increase the cost substantially.

"Instead of taking care of the objection raised by the chairman ETG, the high level committee (HLC) in DoT ignored the objections without sufficient reasons and justification," the letter alleged.

TEPC added that the Telecom Consultants India Limited (TCIL) and many other prospective bidders mentioned multiple times in their reports and during the meetings but HLC kept asking TCIL to prepare the design of the project as repeatered.

It requested the PMO to intervene in the project and make it entirely technology agnostic.