Acting on the advice of the Sam Pitroda panel, state-run Bharat Sanchar Nigam (BSNL) has started the process of preparing a new procurement model for equipment in small tenders instead of the current large ones.
Recently, BSNL made presentations on two procurement models to the panel -- Managed Capacity or need-based small tenders floated by the PSU and Managed Services model under which the services are outsourced to a vendor who then takes care of all the procurement needs.
Of the two models, the PSU has opted for the Capacity model and will float tenders as and when the need arises. BSNL has been asked to submit the draft RFP (Request For Proposal), the first step in inviting tender by the first week of May.
The Department of Telecom will shortly discuss and approve the shift to the new procurement model and the accompanying changes in the RFP in the Telecom Commission meeting.
The BSNL's model-- where capacity is added or reduced every quarter--is also being followed by the private players. BSNL board has already scrapped the 93 million GSM line contract as suggested by the Pitroda panel.
The PSU, according to a Department of Telecom note, said it faces a number of challenges for preparing the RFP but is still working on it. BSNL has stated to the panel that radical changes are required in business process/procedures, responsibilities and accountabilities with enabling empowerment.
Changes are also required in the evaluation criteria, responsibility matrix, governance and control mechanism, BSNL told the panel.
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The PSU said the adopted model, which would be implemented through a vendor, would not have any implications for the staff involved in planning and designing of the tenders.
The scrapped GSM tender was floated more than two years ago to expand the GSM lines of the state-owned telco. However, due to various bureaucratic red-tapism over the tender, BSNL's expansion was stalled.
As a result, BSNL lost out on subscribers to private players like Bharti and Vodafone.