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No PSU allowed participating in Rs 25,000 cr Navy tender

The Indian government has deferred the appeal of state-owned shipyard to participate in the project to construct four amphibious warfare vessels for the Indian Navy. The worth of the project is expected to be around Rs 25,000 crore. Last year the Indian Navy had issued tenders to three private shipyards- Pipavav, ABG and L & T that would be allowed to take part in the tender along with their foreign partners. Similarly, the Defence Ministry had rejected the plea of public sector firms to take part in Rs 15,000 crore tender to build 56 transport aircraft for the Air Force and allowed only private players to take part in it.

http://www.financialexpress.com/news/rs-25000-cr-navy-tender-only-for-private-sector-defence-ministry/1289021

1 Response

  1. 1. I fully support the decision take by the Govt of India not to let the PSUs take part in tenders for warlike equipment.I do not think there might have been any political considerations in arriving at such an important decision having far reaching implications.The decision might have been based factors like:
    (a) Non performing efficiency of the PSUs
    (b) Considerable delay in deliverance if at all they deliver
    (c) Uncurbed tendency of the PSUs to import the assemblies and supply the same with addition of overhead costs.
    (d) Last but not the least poor quality of products produced by PSUs.
    2. The same jolt needs to be given to the Ordnance factories controlled by OFB

    Thanks