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Rampant use of substandard material in supplies made to Discoms, Power Sector

Updated: Sep 18, 2015 12:17:25pm
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New Delhi, Sept 18 (KNN) In yet another chilling reminder of how low-quality equipment pose threat to human lives and property, a 10Kv transformer installed on HT line in Meerut exploded recently, severely scalding five children with sprays of boiling oil that flowed out, leaving one nearby house engulfed in flames and causing cracks in many others.
 
The tragic accident happened in Pachpera village under Bhavanpur police station of the Meerut district, provoking angry demonstrations by locals.
 
Before this incident, a UPPCL lineman also died in Meerut when an electric pole on which he had climbed up to tie wire snapped, sending him crashing down to the ground. This happened after the rope fastened to the wire was pulled by his teammates on the ground.
 
The two incidents which happened in a span of week or so underline the urgency to overhaul utilities’ public procurement system which is being widely abused by greedy vendors with the help of procurement officials who have no qualms about conniving at such malpractices.
 
To understand why quality of transformers manufactured domestically and supplied to utilities is so poor, it would be necessary to know that CRGO steel, a critical component of transformers, being sourced from overseas is mostly of scrap grade.
 
While globally transformers are supposed to have useful life of over 25 years, those supplied to Indian utilities hardly last for 4-5 years. The main reason is use of sub-standard CRGO in transformers here.
 
 Since scrap grade CRGO costs just half of the price of quality steel, manufacturers are able to make a killing by using the cheap material. And that is the reason the industry has become complicit in import of scrap CRGO.
 
The vested interests are so strong that import of the dubious quality steel is continuing unabated despite the quality control order issued by the steel ministry to check entry of such consignments into the country.
 
Sources said such imports are taking place on fake quality certificates issued by the Bureau of India Standard. Customs officials also do not bother to check genuineness of these certificates and clear consignments.
 
Sources said there is more to it than meets the eye. The suspicion that scrap CRGO importers have the blessing of some officials in the BIS and customs is bolstered by the fact that for several months, the BIS has been sitting on a request from Indian Transformers Manufactures Association for data on CRGO imports.  
 
Significantly, those importing CRGO have to deposit fee with BIS for quality certification and so the agency should know how much imports are happening and which are the companies doing imports.
 
It is clear that unscrupulous transformers manufacturers are playing with human lives just to inflate their profits and the menace has become all-pervasive, it is time to make drastic changes in public procurement rules and laws to punish both greedy vendors and conniving officials for sub-standard supplies as suggested by trade body FISME.

Besides, the practice of the contract being awarded to the lowest bidder should also be done away with as it tempts vendors to compromise on quality of material and equipment, putting precious human lives at risk. (KNN/ NM)

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