Energy PSUs optimise costs through bulk goods & services purchase

22 CPSUs save 10% on their air travel cost through bulk agreements

In a novel initiative by the ministry of coal, power, new & renewable energy and petroleum and natural gas, the departments and their respective public sector undertakings (PSUs), have tried to bring down their cost by placing bulk orders for various goods and services.

An Energy PSU Task Force (EPTF) was formed in March 2016 to consolidate demand for travel, insurance, IT services etc and strategise the bulk orders and select vendors accordingly. The EPTF consists of representatives from major PSUs such as Coal India, Power Grid, Neyveli Lignite, Oil India Limited, NTPC, state-owned oil marketing companies, GAIL etc among others.

To start with, around 22 CPSUs would save close to 10 per cent of their air travel spend by signing bulk agreements with all the major domestic airlines in India. These CPSUs also recently signed a Memorandum of Understanding (MoU) with national carrier Air India.

Air India would offer discount on bulk booking and 8-10 per cent discount at the time of booking.

"The EPTF is looking to replicate the success with insurance schemes for their employees, IT services including hardware and software," said Rakesh Kumar, convener, EPTF.

He said to replicate the similar approach in others areas, sub-groups have been formed representing major CPSUs and help in optimising the capex and opex of these CPSUs.