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FISME writes to Power Minister, meets officials to improve procurement practices of Discoms

Updated: Sep 17, 2015 04:08:26pm
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New Delhi, Sept 17 (KNN) Measures suggested by trade body Federation of Indian Micro and Small & Medium Enterprises (FISME) to revamp public procurement system, in order to hold accountable both vendors and officials for sub-standard supplies, should prove effective in preventing incidents like the tragic death of a UPPCL lineman in west UP after falling from an electric pole which broke in half suddenly.
 
The accident in which Balram, a contractual worker of UPPCL deployed as a lineman in Meerut, just 40 km from the national capital, died recently while tying wire to an electric pole,  serves a grim reminder how low-quality material supplied by vendors to utilities could lead to irreparable loss of life. Not just workers but public too could become casualty due to usage of low-quality material.
 
 
As reported in local media, the pole broke in half and fell on the ground when the rope tied to the wire was pulled by Balram’s teammates, some 12, killing the ill-fated lineman on the spot. This accident happened near Radha Govind College.
 
Such unfortunate incidents can be prevented and risk to human lives mitigated if rules and laws concerning procurement are tightened to provide for tough punishment for errant suppliers and procurement officials.
 
Unscrupulous vendors are exploiting weak public procurement rules, often in connivance with procurement officials, to supply low-quality material and equipment to utilities and government agencies, putting at risk precious human lives. The scenario is grim and calls for overhaul of procurement laws.
 
In this context, measures suggested by trade body FISME should come in handy. In a recent letter to power minister Piyush Goyal, the trade body has suggested implementation of measures including 100 per cent computerisation and IT-based management of inventories of material and equipment procured by utilities with doubly entry accounting system providing details on both vendors and concerned procurement officials.
 
Further, FISME has also suggested putting information in public domain on performance of procured equipment by maintaining records on date of purchase, breakdowns, replacement and make of major electricity equipment such as transformers, turbines and switchgear.  
 
A delegation from FISME also met the Additional Secretary, Power Ministry, B N Sharma in this regard and recommended that the grant of central assistance provided to state electricity boards under various schemes should be made conditional on compliance with the outlined measures by them.
 
The trade body has argued that implementation of suggested measures would help in bringing transparency in public procurement by utilities, thereby leading to improvement in quality and efficiency of procured equipment.
 
FISME has a large number of members who are suppliers of equipment and services to the power sector.
  
Significantly, FISME’s suggestions come at a time when the Union Power Ministry is looking at new ways to prod state governments to reform their power sector, and hence assume added significance.
 
State power sector is in financial mess due to poor management of resources by utilities, with losses hitting Rs 1 lakh crore. This comes just three years after the Centre extended an Rs 1.93 lakh crore bailout package in 2012 for utilities. (KNN/ NM)

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