Telangana Transmission Corp shuts-out competition by tweaking tender specs to suit US based CTC licensees
Updated: Dec 18, 2015 11:08:58am
Amravati, Dec 18 (KNN) A shocking example of shutting out competition and tailor making Qualifying Requirements (QR) to suit a couple of large business houses has come to light in the Transmission Corporation of the State of Telangana (TSTRANSCO).
A tender was issued by the TSTRANSCO for replacing existing standard conductor on their overloaded lines with High Performance Conductor.
The two influential licensees of a US Company named CTC (in the field in India for just two years), on hearing that other companies were also going to quote in the tender, have got the QR changed in a manner that no new company could participate in the said tender thus allowing them to make huge profits”, alleged representatives of affected companies in anonymity.
The new types of conductors with higher capacity are getting popular in many countries due to difficulties in getting ‘Right of Way’ clearances for installing new lines. Utilities in advanced countries are however encouraging manufacturers with different technologies to come forward and present their products.
In fact by giving different technologies a chance, the utilities are able to evaluate their products and make the right choice.
Unfortunately in the instant case instead of opening up the PQ conditions to permit more and more new products to enter the fray, what the utility has done through the amendment -apparently at the behest of the suppliers, is to close the entry of products based on other technologies.
Policy experts have observed that the move not only is against the principles of Competition Policy and the Competition Act but also may attract anti-corruption proceedings. A number of cases have been investigated by competent agencies in recent past where competition has been thwarted by tweaking pre-qualification criteria.
The US Foreign Corrupt Practices Act is particularly harsh on such dealings and recently Walmart had to pay hefty fine on allegations of bribing in India.
Affected companies told KNN that they were planning to take up recourse measures available to them under the US and Indian law.
The TSTRANSCO, the state government and above all the people of the state will have to pay hefty price through their nose to unjustly enrich some large companies. (KNN Bureau)
A tender was issued by the TSTRANSCO for replacing existing standard conductor on their overloaded lines with High Performance Conductor.
The two influential licensees of a US Company named CTC (in the field in India for just two years), on hearing that other companies were also going to quote in the tender, have got the QR changed in a manner that no new company could participate in the said tender thus allowing them to make huge profits”, alleged representatives of affected companies in anonymity.
The new types of conductors with higher capacity are getting popular in many countries due to difficulties in getting ‘Right of Way’ clearances for installing new lines. Utilities in advanced countries are however encouraging manufacturers with different technologies to come forward and present their products.
In fact by giving different technologies a chance, the utilities are able to evaluate their products and make the right choice.
Unfortunately in the instant case instead of opening up the PQ conditions to permit more and more new products to enter the fray, what the utility has done through the amendment -apparently at the behest of the suppliers, is to close the entry of products based on other technologies.
Policy experts have observed that the move not only is against the principles of Competition Policy and the Competition Act but also may attract anti-corruption proceedings. A number of cases have been investigated by competent agencies in recent past where competition has been thwarted by tweaking pre-qualification criteria.
The US Foreign Corrupt Practices Act is particularly harsh on such dealings and recently Walmart had to pay hefty fine on allegations of bribing in India.
Affected companies told KNN that they were planning to take up recourse measures available to them under the US and Indian law.
The TSTRANSCO, the state government and above all the people of the state will have to pay hefty price through their nose to unjustly enrich some large companies. (KNN Bureau)
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