UIDAI eases turnover norms for key services contract

The Unique Identification Authority of India (UIDAI) has reduced the revenue requirement of the managed services provider (MSP) contract by Rs 2,000 crore from the earlier limit of Rs 6,000 crore to enable the participation of mid-sized companies in the project.

The MSP tender, considered as one of the largest information technology (IT) outsourcing contracts floated in India, is estimated to be in excess of Rs 1,000 crore for the 7-10-year lifespan of the project.

Earlier, the authority had said that the lead partner or the company leading the consortium for the MSP contract should have an average annual turnover of Rs 6,000 crore, over a period of last three financial years (2007-08, 2008-09, 2009-10). This limit has now been reduced to Rs 4,000 crore.

“The turnover criterion has been revised downwards because the industry requested for it. We are yet to receive the expressions of interest (EoI), but the shortlisting of companies should happen in two weeks’ time,” said a UIDAI official on condition of anonymity.

In its invitation of EoI, UIDAI has also made it clear that primary bidders should have an average annual turnover from systems integration and managed services of Rs 500 crore over last three financial years.

With the turnover limit being reduced, firms other than the top four Indian IT service providers in terms of revenes — TCS, Infosys Technologies, Wipro and HCL Technologies — will now be able to compete for the tender as primary bidders or lead partners.

“We are yet to do the due diligence of how many companies will now be able to participate in the contract but this revision will increase the participation of more players. There is no way that we are shutting the doors to the mid-sized players,” the official added.

Further, the authority has also set the condition that the prime respondent should be registered in India under the Companies Act having its registered office in India.

“It was a national bidding process and not international. Moreover, with this condition, Indian laws will be applicable to the company. It will be under the jurisdiction of Indian laws,” explained the official.